Nifty PSE index notches new high; add these 5 stocks for up to 20% gains

Life Insurance Corporation of India and Bharat Electronics may see up to 10 per cent rally in coming sessions.

Nifty PSE index set a new historic peak on Wednesday, with selective stocks displaying robust chart structures. Shares of REC, Power Finance Corporation and Power Grid Corporation of India hit new all-time high, implying more potential for coming sessions. 

Power Grid Corporation of India surged over 2 per cent, while REC and Power Finance Corporation gained close to 2 per cent each. 

Here’s the technical outlook for selective bullish stocks in Nifty PSE index:-

REC Ltd (RECLTD)

Likely target:  Rs 200

Upside potential:  20%

Shares of REC reached a new historic peak on Wednesday, with a trend possessing resilient sentiment. The price action is very aggressive, absorbing all the sell-off emerging in the uncharted territory. 

So far this year, the stock has surged 43 per cent and continues to remain a dominant stock. The medium-term uptrend is intact over the supports of Rs 140 and Rs 120 levels. Immediate support comes to Rs 150, which needs to be considered on the closing basis.

The stock is heading in the direction of Rs 200, as per the weekly and daily chart. CLICK HERE FOR THE CHART

Power Finance Corporation Ltd (PFC)

Likely target:  Rs 250

Upside potential:   20% 

Shares of PFC are sighting bullish momentum in the overbought category of the Relative Strength Index (RSI), as per the daily chart. The underlying trend is unyielding, with momentum observing accumulation on minor corrective moves. 

Unless the support of Rs 180 is breached, the trend suggests an up move towards Rs 250 levels. Immediate support falls at Rs 192 mark. CLICK HERE FOR THE CHART

Life Insurance Corporation of India (LICI)

Likely target: Rs 700

Upside potential: 10%

The stock has a “Cup and Handle” breakout, with price action pointing a rally towards Rs 700.The trend is bullish over the support of Rs 610, which was its last breakout mark. 

The key support exists at Rs 590 level, which observed accumulation since late May to early June of this year, as per the chart. The stock has surpassed the key barrier of the 200-day moving average (DMA) placed at Rs 620 level. CLICK HERE FOR THE CHART

Bharat Electronics Ltd (BEL)

Likely target: Rs 120

Upside potential: 10%

Shares of Bharat Electronics have soared 27 per cent so far this year. The trend has been aggressive, with every decline seen addition regards to a long term perspective. Immediate support comes to Rs 118 and Rs 110 levels.

The stock continues to rally further with a gradual upside structure that began in late May of this year. The stock points to Rs 140 as its immediate reach, as per the daily chart.  CLICK HERE FOR THE CHART

Power Grid Corporation of India Ltd (POWERGRID)

Likely target: Rs 280

Upside potential: 10%

Following the breakout of the “Golden Cross”, the counter has rallied higher with a gradual space. The trend continues to endure support near the 100-DMA, currently set at Rs 206.

Until the counter honours the 100-DMA, the upward trend is likely to forge move to Rs 280-mark, as per the daily chart. Momentum indicator, Moving Average Convergence Divergence (MACD) has been consistent over the key mark of zero line, suggesting trend to favour bulls. CLICK HERE FOR THE CHART