How to trade newly crowned Navratnas: RailTel, SJVN, NHPC

SJVN, NHPC and RailTel Corp can potentially rally up to 14% from present levels, suggests technical charts. Watch out for these key support and resistance levels going ahead.

Shares of SJVN, RailTel and NHPC rallied up to 5 per cent in intra-day deals on Monday, after the Indian government granted the four Central Public Sector Enterprises (CPSEs), including Solar Energy Corporation of India to 'Navratna' status. 

The Navratna status empowers companies with faster decision-making in areas such as capital expenditure, investments in joint ventures, subsidiaries and increased efficiency; thus giving these select CPSEs comparative advantages to help them become global giants. READ MORE

The total count of 'Navratna' companies now has increased to 25 - including the likes of Bharat Electronics, Rail Vikas Nigam (RVNL), Hindustan Aeronautics, National Aluminium Company (Nalco), NMDC, Oil India and RITES among others.

 

Technically, what lies ahead for these three listed CPSE stocks? Here's what the charts suggest:

SJVN

Current Price: Rs 136

Upside Potential: 12.5%

Support: Rs 134; Rs 130

Resistance: Rs 137; Rs 140; Rs 142; Rs 144

SJVN is seen attempting to break above its 20-DMA (Daily Moving Average) in trades on Monday, but seems to be facing some resistance around its 50-DMA. The 20-DMA stands at Rs 137, which almost coincides with the 100-DMA; while the 50-DMA stands at Rs 140. CLICK HERE FOR THE CHART

On the downside, strong support for SJVN stock lies at Rs 130 levels. On the daily scale, among the key momentum oscillators - the 14-day RSI has shown a positive crossover; further, the MACD (Moving Average Convergence-Divergence) and Slow Stochastic too are showing signs of potential positive crossovers.

Having said, that the stock will need to clear the barrage of resistances, including the ones at Rs 142 and Rs 144 for a potential rally towards Rs 153. Interim support for the stock can be expected at Rs 134.

NHPC

Current Price: Rs 98

Upside Potential: 12.2%

Support: Rs 96.50; Rs 93.50

Resistance: Rs 99.30; Rs 100.35; Rs 101.80

NHPC stock is seen attempting a breakout above its 100-DMA, after a month-long period of consolidation. The 100-DMA stands at Rs 99.30; above which key resistance for the stock is seen at Rs 101.80 levels. CLICK HERE FOR THE CHART

The medium-term chart suggests that break and sustained trade above Rs 100.35 levels, can open the doors for a rally towards Rs 110 levels. On the downside, support for the stock can be expected around its 20-DMA at Rs 96.50 and Rs 93.50.

RailTel Corporation of India

Current Price: Rs 499

Upside Potential: 13.4%

Support: Rs 488; Rs 476; Rs 454

Resistance: Rs 521

RailTel stock is seen testing resistance around its super trend line on the daily scale at Rs 521 levels. The near-term bias is likely to remain tepid as long as the stock fails to clear this hurdle. Beyond which the stock can potentially spurt to Rs 566 levels.

On the flip side, failure to clear the hurdle can see the stock slip back towards its 50- and 20-DMA at Rs 488 and Rs 476 levels; with key support at Rs 454. CLICK HERE FOR THE CHART