Air India disinvestment: Privatisation-bound BPCL, SCI can rally up to 15%

SpiceJet seems to be in a trading range, while Container Corporation of India is holding above its key support level

In one of the largest privatisation drive over the past two decades, the government on Friday sold Air India to the Tata Group for an enterprise value of Rs 18,000 crore.

In what experts termed a win-win transaction, Tata Sons, which operates two airlines Vistara and AirAsia India, will become the second-largest airline in domestic market with around a 25 per cent market share while becoming the largest Indian airline on international routes.

The second contestant, the consortium led by SpiceJet Chairman Ajay Singh, had placed a bid of Rs 15,100 crore for the airline.

Airline stocks were in demand in trades on Monday, as of 13:20 PM, SpiceJet surged to a high of Rs 77.30, and was quoting at Rs 76.80, up 3.4 per cent on the BSE. Shares of InterGlobe Aviation (Indigo) zoomed over 8 per cent to Rs 2,122.

Here's a quick technical analysis on these two air carriers and two PSU divestment candidates - BPCL, SCI and Container Corporation of India:

InterGlobe Aviation Ltd (INDIGO)
Likely target: Rs 2,300
Upside potential:  15%

The recent breakout that crossed the crucial resistance of Rs 1,900 level, which was a big obstacle since Oct 2019 indicates a bullish rally. This positive move may see the stock scale Rs 2,300 level in the coming sessions, according to the weekly chart. The support for the stock exists at Rs 1,900 and Rs 1,850 levels. One can expect market participants to get more aggressive once Rs 2,200 gets surpassed, a small resistance mark.  CLICK HERE FOR THE CHART

SpiceJet Ltd (SPICEJET) 
Outlook: Trading between 200-DMA and 50-DMA

Until and unless the share price of SpiceJets does not break above Rs 78 level decisively, which is its 200-day moving average (DMA), the positive bias may not see any added interest by market participants. On the flip side, a close below 50-DMA, currently placed at Rs 72.80 may drag the Moving Average Convergence Divergence (MACD) below the zero line leading to a bearish sentiment, as per the daily chart. CLICK HERE FOR THE CHART
 
Bharat Petroleum Corporation Ltd (BPCL)
Likely target: Rs 480 and Rs 500
Upside potential:  6% to 9%

A positive move above 200-DMA placed at Rs 439 shows a bullish outlook for the upcoming sessions (Stocks rising above 200-DMA are viewed as positive by market participants). This up move has reached near the 50-DMA located at Rs 455 and looks to be heading towards Rs 460, which is its 100-DMA. When this level gets conquered, the next breakout may see a rally in the direction of Rs 480 and Rs 500 levels. The support for the current momentum stays at Rs 440 level. CLICK HERE FOR THE CHART
 
Shipping Corporation Of India Limited (SCI)
Likely target: Rs 150

Upside potential:  9%

The stock has absorbed all the selling pressure from the overbought category of RSI and crossed the resistance of Rs 133 to Rs 135 levels with substantial volumes. The trend has given a next breakout that seems to be heading towards Rs 150 levels, as per the daily chart. The closing basis support for the stock is at Rs 130 level. CLICK HERE FOR THE CHART

 
Container Corporation of India Ltd (CONCOR)
Outlook: Positive bias till the 100-DMA is defended

The stock holds the support of 100-DMA placed at Rs 685 on the year to date basis, as per the daily chart. As long as this support is defended, the positive bias may resume the bullish trend. A breakdown of this average support may drag the MACD below the zero line and the stock price may see a correction, according to the daily chart. CLICK HERE FOR THE CHART