The festive season has begun and the market seems to have got its mojo back. The benchmark indices have rallied over 55 per cent from the March-lows, though there have been intermittent sessions of profit-booking. On Monday, the S&P BSE Sensex traded over 1 per cent higher at 40,414 levels while the NSE's Nifty50 index was quoting nearly a per cent higher at 11,872 levels.
Below is a list of three stocks from the public sector (PSU) that look promising on charts and can deliver decent returns in the short-to-medium term. Take a look.
Bharat Electronics Limited (BEL):
After a decent rally towards Rs 120 levels, this stock has witnessed a substantial selling pressure lately. This was due to the resistance of 200-weekly moving average (WMA) placed at Rs 112.50. The counter failed to close decisively above the resistance and lost the upside bias. However, the current price of Rs 90 is hovering around the 200-day moving average (DMA). Till the counter holds on to Rs 85, 200-DMA is defended, and the upside bias may see a reversal towards Rs 101.60, which is its 50-DMA. The stock had seen weakness below Rs 100 with low volume. This reflects the deterioration of selling pressure at the current levels. CLICK HERE FOR THE CHART
NLC India Limited (NLCINDIA):
A “Golden Cross” formation of 50-DMA, 100-DMA with 200-DMA has affirmed an upside rally in the direction of Rs 60 and Rs 65, as per the daily chart. The support stays at Rs 47.40 levels, which is its 200-DMA. The major move is expected above Rs 52 levels, which may indicate a 50-DMA and trendline breakout. Going forward, if Relative Strength Index (RSI) crosses 48 value, the strength and momentum are expected to strengthen further. CLICK HERE FOR THE CHART
Hindustan Aeronautics Ltd (HAL):
The counter is resilient to breach 50-WMA since September 2020. This reflects the inherited strength and buying momentum around the same moving average, currently placed at Rs 732 levels. Even, the current price is hovering around 200-DMA placed at Rs 741 levels. This scenario indicates a strong support of moving averages which are being defended calmly. Overall, till the price holds Rs 730 levels, the upside bias may see a strong reversal towards the immediate resistance of Rs 800 and Rs 840 levels. CLICK HERE FOR THE CHART