Power Grid, NTPC rally post govt's infra push; will BHEL and NHPC follow?

Power Grid is continuously trading above 200-weekly moving average (WMA) since June 2014.

Finance Minister Nirmala Sitharaman on Tuesday launched a National Infrastructure Pipeline (NIP), unveiling projects worth Rs 102 trillion, wherein a major chunk is being alloted to power, renewable energy, atomic energy and petroleum and natural gas sectors. Reacting to the announcement, power stocks jumped in Wednesday's trading session. Among state-run power stocks, NTPC gained 2 per cent, while Power Grid Corporation (PFC) closed 2.76 per cent higher. However, Bharat Heavy Electricals (BHEL) and NHPC remained sluggish.

Here's a look at what technical charts indicate for state-run power stocks -
 
NTPC (NTPC): The moment this counter breached the 200-day moving average (DMA)  in September 2019, along with Moving Average Convergence Divergence (MACD) falling below the zero line, the optimism started diminishing. The current momentum suggests MACD is rising above zero line with the counter heading towards 200 DMA placed at Rs 124.20. A major rally may be seen above Rs 125 towards Rs 135 and Rs 142 levels. The 50 DMA and 100 DMA located at Rs 117 and Rs 118.20 remain support levels.CLICK HERE FOR THE CHART

Power Grid Corporation of India Ltd (POWERGRID): This counter is continuously trading above 200-weekly moving average (WMA) since June 2014. On the higher side, selling pressure is being witnessed around Rs 210 levels  A trend line breakout above Rs 202 may start indicating that if Rs 210 is conquered, then Rs 240 and Rs 255 should be the immediate resistance level, suggests weekly chart.CLICK HERE FOR THE CHART

NHPC Ltd (NHPC): The counter has witnessed sideways trading and unless a major rally that can push price above Rs 27 levels, it may continue to trade in the range of Rs 26.50 – Rs 20 levels. Technically, when the daily outlook is compared with weekly outlook, the scenario reflects a mixed sentiment.CLICK HERE FOR THE CHART

 
Bharat Heavy Electricals Ltd (BHEL): The counter is resilient to cross 200-DMA as per the daily chart. However, on the downside, the buying momentum may be visible around the last trading support of Rs 41. There is absolutely no question that the major upside rally awaits breakout above Rs 60, this also coincides with the weekly resistance. So, till the counter holds Rs 41 levels, one may expect a rally towards 100 DMA, located at Rs 49. The MACD has made a positive crossover below the zero line, a sign of a positive bias. CLICK HERE FOR THE CHART