PSUs in focus: Coal India may hit new all-time high; BPCL could fall 11%

PSU stocks are on investors radar amid contrasting news flow. While, on one hand, the government has approved stake sale in Hindustan Zinc, it has called off privatisation process of BPCL for the time being.



On its part, the Nifty PSE (Public Sector enterprise) is presently hovering around major support level, which it has held since January 2021. Any pullback could see robust rally with major stocks seeing sharp gains.

There are a few stocks in the Nifty PSE index that continue to stay afloat on the upper side of the bullish breakout during major uncertain times. Shares of Hindustan Aeronautics, for instance, knocked a historic peak of Rs 1,850 on Monday, while Coal India has held its ground above 200-day moving average (DMA) support despite dire market sentiment. 

On the flip side, stocks like Bharat Petroleum Corporation and Hindustan Petroleum Corporation linger in bear territory after the government announced reduction in excise duty on petrol and diesel. 

Given the current scenario, here's the outlook on charts for upcoming sessions:

NIFTY PSE (NIFTYPSE)

Likely target: 4,200

Upside potential: 5%

The index is presently oscillating around the 200-day moving average (DMA), placed at 4,008 levels. The said average has been decisively held since January 2021 with the index maintaining its bullish stance. It did violate the average once, but could not breakdown further. At present, any pullback from the 200-DMA could see a sharp reversal in the index price to 4,200-mark, which is its 50-DMA. CLICK HERE FOR THE CHART

Hindustan Aeronautics Ltd (HAL) 

Likely target: Rs 2,000

Upside potential: 11%

Hindustan Aeronautics endures the formation of "Higher High, Higher Low", shows the weekly chart. Yes, there is divergence on the Relative Strength Index (RSI), yet the stock price action is not letting selling pressure to dominate the upward momentum. The closing basis support falls at Rs 1,700; and as long as the stock defends Rs 1,400-mark, the medium-term trend points towards a target of Rs 2,000 levels, which would be a new all-time high. CLICK HERE FOR THE CHART

Coal India Ltd (COALINDIA)

Likely target: Rs 210

Upside potential: 13%

The very short-term picture on the daily chart suggests a negative sentiment for the stock. To be fair, though, the stock managed to hold the ground above 100-DMA set at Rs 173 and is making rigid efforts to conquer the 50-DMA (Rs185). If this occurs, the breakout could see sharp jump towards a fresh all-time high of Rs 210. CLICK HERE FOR THE CHART

Hindustan Petroleum Corporation Ltd (HINDPETRO)

Likely target: Rs 200

Downside potential: 14%  

The stock has hit new 52-week lows on regular basis with extreme bearish sentiment. The formation of "Head and Shoulder" further negates the positive signal, shows the weekly chart. The breakdown under the 200-weekly moving average (WMA), placed at Rs 234, could trigger a fresh sell-off. The outlook remains bearish.  CLICK HERE FOR THE CHART

Bharat Petroleum Corporation Ltd (BPCL)

Likely target: Rs 290

Downside potential: 11%

The medium-term trend is bearish under Rs 400 levels, after which the next support comes at Rs 290-mark. One could see pullback as the stock trades 30 per cent below the all-time high. In addition, there is a bearish formation of "Head and Shoulder" pattern, which signals a selling pressure on every reversal, shows the weekly chart. CLICK HERE FOR THE CHART