India summer temperature hits 50 degrees: 5 cool stocks for your portfolio

Infra stocks such as - Larsen & Toubro, Adani Ports, BPCL, Ashok Leyland and Container Corporation of India can rally up to 17 per cent, technical charts suggests.

Summer temperatures across select cities in India have crossed the 50 degree celsius mark. However, infra seems to be a 'cool theme' for investors to park their money in as most brokerages remain optimistic on the outcome of Lok Sabha polls.

In this backdrop, they expect continuity in policy, with the new government likely to continue its thrust on the infrastructure sector.

So far since April 19, the Nifty Infra index has surged around 6 per cent, with 16 out of the 30 index stocks, outperforming the underlying benchmark index.

Ashok Leyland, Balkrishna Industries, Siemens and Bharat Forge were the top gainers, up over 30 per cent each. Cummins, Container Corporation of India, InterGlobe Aviation, HPCL, Power Grid, Godrej Properties, BPCL, IRCTC and Adani Ports gained 10 - 20 per cent during this period.

Only six stocks among the Nifty infra index have registered negative returns as of May 28, which includes the likes of Apollo Hospitals, Indian Hotels, DLF, Gail India, Petronet LNG and Indian Oil Corporation.

Here are five infra stocks, that can potentially deliver up to 17 per cent returns in the near term, as they are placed favourably on the charts.

Larsen & Toubro

Current Price: Rs 3,630

Upside Potential: 10.2%

Support: Rs 3,583; Rs 3,538; Rs 3,477

Resistance: Rs 3,710; Rs 3,830

Larsen & Toubro stock seems to be in pull-back stage, after having tested support around its 200-DMA (Daily Moving Average) in mid-May. The stock has rallied 14 per cent from its low of Rs 3,535 hit on May 13. Presently, the stock is seen holding above its key moving averages, with near support seen at Rs 3,583 - its 50-DMA followed by the 100-DMA and 20-DMA at Rs 3,538 and Rs 3,477, respectively. CLICK HERE FOR THE CHART

The fact that the short-term, 20-DMA, is below the 50- and 100-DMA seems to restrict the bullish bias at the counter. However, key momentum oscillators are positive on the daily charts, and on the verge of turning favourable on the weekly scale. Hence, the stock is likely to trade with a positive bias going ahead.

On the upside, the stock can potentially rally to Rs 3,830, breakout above which can trigger a spike towards the Rs 4,000-mark. Near resistance for the stock is seen at Rs 3,710.

Adani Ports

Current Price: Rs 1,395

Upside Potential: 11.1%

Support: Rs 1,340

Resistance: Rs 1,490

Adani Ports stock is expected to trade with a positive bias as long as the stock holds above Rs 1,340 level. On the upside, the stock needs break and sustain above Rs 1,490 level, in order to gain upside momentum. The stock can target Rs 1,510 - Rs 1,550 on the upside. CLICK HERE FOR THE CHART

BPCL

Current Price: Rs 641

Upside Potential: 17%

Support: Rs 636; Rs 628

Resistance: Rs 693

BPCL seems to be holding nicely above the 20-DMA support at Rs 628. The long-term chart suggests a positive bias for the stock, as long as it holds above Rs 636. On the upside, the stock needs to break and trade consistently above Rs 693, for a potential flare up to Rs 750 levels. CLICK HERE FOR THE CHART

Container Corporation of India (Concor)

Current Price: Rs 1,088

Upside Potential: 13.5%

Support: Rs 1,050; Rs 1,015

Resistance: Rs 1,130; Rs 1,185

Concor is seen trading with a bullish note on the monthly scale, with bias likely to remain favourable as long as the stock holds above Rs 1,050 levels. On the upside, the stock needs to break and trade consistently above Rs 1,130, for fresh upside momentum. Fibonacci chart suggests a bullish outlook as long as Rs 1,015 holds, and potential upside targets of Rs 1,185 and Rs 1,235 levels. CLICK HERE FOR THE CHART

Ashok Leyland

Current Price: Rs 225

Upside Potential: 16.4%

Support: Rs 216; Rs 207; Rs 202

Resistance: Rs 240

Ashok Leyland stock has given a fresh breakout on the monthly chart, the bias is likely to remain bullish as long as the stock trades above Rs 207, near support is seen at Rs 216. On the daily scale, the stock is trading in overbought zone, hence a dip to Rs 202 levels cannot be ruled out. The stock is current trading in uncharted territory, with a potential upside target of Rs 262. Interim resistance for the stock can be expected around Rs 240. CLICK HERE FOR THE CHART