Hindustan Aeronautics, BHEL, Bharat Dynamics: How to trade these 3 buzzing PSU stocks

Indian benchmark indices settled with big cuts on Friday amid the escalating tensions between India and Pakistan. However, consistent FII buying has been supporting the Dalal Street sentiments amid the busy Q4 results. BSE Sensex crashed 880.34 points, or 1.10 per cent to settle at 79,454.47, while NSE's Nifty50 crumbled 265.80 points, or 1.10 per cent to end at 24,008 for the day.

 

Select buzzing PSU stocks including Hindustan Aeronautics Ltd (HAL), Bharat Heavy Electricals Ltd (BHEL) and Bharat Dynamics Ltd (BDL) and are likely to remain under the spotlight of traders for the session today. Here is what by Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to about these stocks ahead of Monday's trading session:

 

Hindustan Aeronautics | Buy | Target Price: Rs 4,700-4,900 | Stop Loss: Rs 4,300

We are observing a higher top higher bottom formation on the daily charts of HAL. The stock has good support at Rs 4,450 – 4,375 levels. The stock is outperforming the benchmark indices. Even the momentum indicator RSI is positively poised. Combining all the above parameters it is evident that momentum on the upside is likely to continue. Hence, one can buy the stock at current levels with a stop loss of Rs 4,300 for a target Rs 4,700–4,900levels in a couple of weeks.

 

Bharat Dynamics | Buy  | Target Price: Rs 1,670-1,800 | Stop Loss: Rs 1,400

We are observing a higher high formation in Bharat Dynamics on the daily charts, which sign of strength. The stock has good support at Rs 1,475 – 1,450 levels. The stock is outperforming the benchmark indices. Even the momentum indicator RSI is positively poised. Combining all the above parameters it is evident that momentum on the upside is likely to continue. Hence, one can buy the stock at current levels with a stop loss of Rs 1,400 for a target Rs 1,670 –1,800 levels in a couple of weeks.

 

Bharat Heavy Electricals | Buy  | Target Price: Rs 228-241 | Stop Loss: Rs 209

We are observing BHEL has taken support at 50-days SMS (Rs 210) on the daily charts and has closed on a positive note. However, the stock is underperforming the benchmark indices but the momentum indicator RSI is positively poised. This suggests that upside momentum is likely to continue. Hence, one can buy the stock at current levels with a stop loss of Rs 209 for a target Rs 228–241 levels in a couple of weeks.