The next few days are going to be very important for investors in the Indian stock market. Major market analysts and market experts have indicated huge bullishness in some selected heavyweight and public sector stocks (PSU Stocks) just before the deadline of June 19. This radar includes the country’s most valuable company Reliance Industries Limited (RIL), oil marketing giants HPCL and BPCL as well as engineering and infrastructure giant Larsen & Toubro (L&T). Experts believe that amidst domestic and global signals, a strong breakout situation is being created on the charts of these four companies, which can become a source of huge earnings for short term traders.
Increased interest of institutional investors in Reliance and L&T According to market experts, Reliance Industries shares are witnessing a spectacular recovery from low levels. Due to continuous expansion in digital and retail verticals and expectations of value unlocking, big fund houses are betting on this stock. On the other hand, Larsen & Toubro (L&T), a company considered to be the backbone of the infrastructure sector, has strengthened its position by continuously receiving large orders from the domestic and international markets. Experts say that before the date of June 19, huge buying with volume can be seen in both these frontline stocks, due to which both these stocks can prove to be ‘star performers’ in taking the index higher.
Blockbuster boom expected in oil PSUs like HPCL and BPCL There has been excellent momentum in the shares of state-owned oil marketing companies (OMCs) i.e. Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) for the last few sessions. Due to stability in crude oil prices in the international market and improvement in refining margins at the domestic level, the expectations of the quarterly results of these companies are much better. According to market experts, a bullish crossover situation is being created in both these stocks on dividend and technical charts. Short term investors and swing traders are preparing to make big profits by creating positions in these refinery shares before June 19.
Experts’ special strategy and stoploss guidelines for investors Although there is a bullish environment in the market, technical analysts have advised investors to exercise utmost caution. Experts say that in this turmoil before June 19, one must follow strict stoploss before entering any stock. While in companies like Reliance and L&T, the advice is being given to gradually buy on dips for long-term portfolio, in HPCL and BPCL, the strategy of quick profit booking through momentum trading would be better. Retail investors have been advised to choose the right stock among these four giants as per their risk appetite.
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