These 3 PSU stocks can soar 20% as Nifty PSE index hits new all-time high

Coal India, Hindustan Aeronautics and GAIL (India) have chart structures suggesting further upside of up to 20%

The Nifty PSE index sets a new historic peak on Wednesday, with robust optimism that is foreseeing further upside ahead. GAIL (India), Hindustan Aeronautics and Coal India are the three front contender that led index to scale higher levels. 

Shares of Hindustan Aeronautics and Coal India hit fresh all-time high on Wednesday, while GAIL (India) reached its peak in the previous session. 

Both, Hindustan Aeronautics and Coal India were seen trading with 0.70 per cent and 0.50 per cent gains, respectively, against the benchmark indices, which witnessed a sluggish session, with a cut of 0.40 per cent. 

Here’s the technical outlook for these major stocks amid Nifty PSE index reaching a new historic peak:-

NIFTY PSE (NIFTYPSE)

Likely target:   5,000 and 5,200

Upside potential: 3.50% to 7%

The Nifty PSE index has broken out of the long rectangular consolidation between 4,600 to 3,600 levels, occurring since November 2021. The decisive breakout over 4,600 mark has propelled more upside for the medium-term, initially to reach 5,000 and thereafter to 5,200 levels. 

As the index claims a new historic peak, the momentum has suited a resilient sentiment, overriding any selling pressure. The underlying trend has strengthened and is equipped to scale higher highs. 

The support for the bullish trend exists at 4,700 and 4,800 levels, as per the daily chart setup. CLICK HERE FOR THE CHART

GAIL (India) Limited (GAIL)

Likely target: Rs 125 and Rs 135

Upside potential:  12% to 20%

Shares of GAIL (India) have succeeded in conquering the hurdle range of Rs 111 to Rs 109, which it has been botching since mid-2021. Sustainability over this range could mean a beginning of a new upward rally. 

While there is a negative divergence of the Relative Strength Index (RSI), the price action is not letting bears to outnumber the bullish sentiment. Until the support of Rs 106 is shielded, the optimistic bias shall see an upward rally in the direction of Rs 125 and Rs 135. CLICK HERE FOR THE CHART

Hindustan Aeronautics Ltd (HAL) 

Likely target: Rs 3,500

Upside potential: 15%

The stock has been on a gradual up move since early 2021 and continues to maintain its course, as per the weekly and daily chart. Holding a support Rs 2,800 levels, the upside bias towards Rs 3,500 cannot be ruled out. 

The long-term chart appears promising, with every critical support bolstering the upward bias. The “Higher High, Higher Low” formation remains intact, as per the multi time frame charts.  CLICK HERE FOR THE CHART

Coal India Ltd (COALINDIA)

Likely target: Rs 285

Upside potential: 18%

A new all-time high has triggered further upside in the shares of Coal India. This momentum is aiming to reach Rs 285 from a short-to-medium term perspective. The support for the stock exists at Rs 225, which can be considered on the closing basis. 

The bullish bias for the long term is thriving over the support of Rs 215. Only upon breaching this critical level, the bias could transform into a negative reversal. CLICK HERE FOR THE CHART