Sudeep Shah, the Head of Technical Research and Derivatives at SBI Securities, expresses a bullish outlook on three key public sector undertakings (PSUs): BHEL, Bharat Electronics, and Canara Bank. He notes that BHEL has recently experienced a breakout above its trendline, driven by increasing volumes and consistent closes above the upper Bollinger Band, indicating strong bullish momentum. Bharat Electronics has similarly broken out from a trading range of Rs 425–390 with heavy volumes, solidifying a strong uptrend. In contrast, Shah advises caution on Sagility, which has seen a significant 23 percent rally in October, suggesting that the stock may be overextended.
The Nifty index has been consolidating after an exceptional rally of over 1,500 points in October, nearing its record high before facing resistance amid global uncertainties and profit booking. The index has traded within a narrow band of 26,104–25,711 over the past 11 sessions, with the Relative Strength Index (RSI) cooling to 57.84, indicating a decline in momentum. Despite this consolidation, Shah notes that the broader trend remains intact as the Average Directional Index (ADX) remains strong. Support levels are identified at 25,520–25,500, while resistance is seen at 26,100–26,150, with a breakout above this range potentially resuming bullish momentum.
In the banking sector, the Bank Nifty has shown signs of consolidation after reaching a lifetime high of 58,578, with profit booking near 58,600 contributing to a bearish candle formation. The RSI has eased from 76.64 to 62.29, suggesting a waning bullish strength, yet the overall sentiment remains positive. Support is seen at 57,600–57,500, correlating with the 23.6 percent Fibonacci retracement, while resistance sits at 58,400–58,500. Should the index close above this resistance zone, it could reignite momentum towards 59,000–59,500. Investors are advised to keep an eye on Ajmera Realty and Bharat Electronics for potential opportunities, as both stocks exhibit bullish setups supported by strong technical indicators.