SBI, Power Grid can turbocharge your portfolio; 5 PSU stocks to bet on

PSU banks, CPSE stocks rally post exit poll verdict: SBI, Power Grid, Coal India, Hindustan Aeronautics and Union Bank of India seem to be favourably placed on the charts.

Indian equity benchmark indices roared to record highs on Monday, as stocks reacted to exit poll prediction of a likely landslide victory to the Narendra Modi-led BJP government.

The S&P BSE Sensex zoomed to a high of 76,739, and was up 2.9 per cent or 2,124 points at 76,090 as of 10:30 AM. The NSE Nifty 50 index hit a new summit at 23,339, and quoted around 23,200 levels - up 2.9 per cent or 660 points.

While buying was seen across-the-board, PSU (state-run) stocks were the major movers, in hopes of continued reforms. The Nifty PSU Bank index zoomed 6.5 per cent, while the Nifty CPSE index vaulted 6 per cent.

Here are 5 stocks among the Nifty PSU Bank and CPSE universe that look strong on charts, and can potentially generate solid returns in the near-term.

SBI

Current Price: Rs 877

Upside Potential: 14%

Support: Rs 855; Rs 835

SBI stock has given a fresh breakout on the daily chart backed by strong volumes. The stock surged over 5 per cent and saw trades of around 1.5 crore equity shares in less than 30 minutes of trade on Monday.

Technically, SBI stock is expected to trade with a bullish bias as long as the stock holds above Rs 855 levels. Below which, the gap created around Rs 835 - Rs 840 range is likely to act as a support for the stock. On the upside, the stock may attempt a rally towards the coveted Rs 1,000-mark. CLICK HERE FOR THE CHART

PowerGrid Corporation of India

Current Price: Rs 341

Upside Potential: 12.9%

Support: Rs 330

PowerGrid stock has zoomed 10 per cent in trades on Monday so far. The stock has given a breakout on multi time-frames, and is expected to trade with a bullish bias as long as it holds above Rs 330. On the upside, the stock may continue its ascent with Rs 375 - Rs 385 as near-term targets. CLICK HERE FOR THE CHART

Hindustan Aeronautics

Current Price: Rs 5,240

Upside Potential: 9.7%

Support: Rs 5,200

Hindustan Aeronautics stock is likely to trade with a positive bias as long as the stock holds above Rs 5,200 level. On the upside, the stock can attempt a rally towards Rs 5,750 levels, suggests the weekly chart. Key momentum oscillators are in fairly overbought zone, but more importantly, the Directional Index is indicating likelihood of strength at the counter. CLICK HERE FOR THE CHART

Coal India

Current Price: Rs 525

Upside Potential: 10.5%

Support: Rs 505

Coal India has given a fresh breakout on the daily and weekly scale. Moreover, the key momentum oscillators too have given a position divergence on the weekly charts. As such, the bias for the stock is likely to remain favourable as long as it sustains above Rs 505 levels. On the upside, the stock can zoom to Rs 575 - Rs 580 levels. CLICK HERE FOR THE CHART

Union Bank of India

Current Price: Rs 168

Upside Potential: 25%

Support: Rs 164

Union Bank of India is likely to trade with a positive bias as long as the stock sustains above Rs 164. On the upside, the stock has near resistance at Rs 175, above which the stock can potentially rally to Rs 190 - Rs 210 levels, suggests the long-term chart. Below Rs 164, the key support for Union Bank of India stock stands at Rs 150. CLICK HERE FOR THE CHART