Govt to infuse Rs 2K cr in NIIF debt fund: Time to invest in infra stocks?

On a weekly chart, L&T faces resistance at Rs 1,165 levels, which is its 200-weekly moving average (WMA)

The government on Wednesday announced it will infuse Rs 2,000 crore as equity in a debt platform of the National Investment and Infrastructure Fund (NIIF) in the current financial year. This is part of the Rs 6,000 crore announced by Finance Minister Nirmala Sitharaman under a stimulus package earlier this month.

According to a report by Business Standard, over the next five years of the national infrastructure pipeline, the debt financing platform can potentially support the construction of infrastructure projects worth Rs 1 trillion. This will act as a catalyst in attracting more investments into the infrastructure sector. READ MORE

That said, will it be a good idea to place your bets on construction and infrastructure-related stocks in the current market? Here's what the charts suggest. 

Larsen & Toubro Ltd (LT): The weekly chart indicates the resistance of Rs 1,165 levels, which is its 200-weekly moving average (WMA). The Moving Average Convergence Divergence (MACD) has crossed the zero line, suggesting the overall trend will witness buying momentum on the corrective moves. However, till the resistance is not conquered, the upside bias may see selling pressure. The closing basis support stays at Rs 1,075 levels. CLICK HERE FOR THE CHART
  
Bharat Forge Ltd (BHARATFORG): The “Inverse Head and Shoulder” formation can be seen on the weekly chart. This has a neckline that coincides with the 200-WMA currently located at Rs 518 levels. This counter has been unable to conquer 200-WMA since March 2020. Only a strong close above the moving average resistance, which needs to be held for a week, may see a rally towards Rs 600 levels. The upside bias is productive till the stock holds Rs 475 levels. CLICK HERE FOR THE CHART
  
Siemens Ltd (SIEMENS): After hitting 10 per cent upper circuit with huge volumes, this counter is exhibiting a strong positive sentiment for the coming sessions. This move is heading towards Rs 1,700 from a short to medium-term perspective. The closing basis support stays at Rs 1,440 levels. One can see a trendline breakout on the Relative Strength Index (RSI) which instigates further upward strength. CLICK HERE FOR THE CHART
  
DLF Ltd (DLF): With a formation of “Higher High, Higher Low” on the weekly chart, this counter is set to climb higher levels towards Rs 220 in the near term. Along with this momentum, the stock has successfully crossed 200-WMA indicating upside potential. Both the technical indicators MACD and RSI are supportive of the upside hinting at higher levels. The closing basis support stands at Rs 173 levels. CLICK HERE FOR THE CHART
  
The Grasim Industries Ltd (GRASIM): A clear resistance of 200-WMA can be seen on the weekly chart. This counter needs to cross Rs 863 mark firmly to breakout towards Rs 950 and Rs 980 levels. The support stays at Rs 830 and Rs 815 levels. The RSI has entered the overbought condition suggesting profit-booking may emerge.  CLICK HERE FOR THE CHART