By Brijesh Bhatia
January has been a turbulent ride for stock market traders, with swings that have left them on the edge of their seats. As the dust begins to settle, all eyes are now on the upcoming Union Budget, scheduled for February 1, 2025. With the government’s financial roadmap set to unfold, the focus is shifting towards key sectors that may benefit from potential policy changes. Among these, CPSE (Central Public Sector Enterprises) seems to be garnering attention, with its performance on the chart signalling possible bullish momentum.
Also ReadBreakout Charts: Three Stocks to Add to Your Watchlist Nifty CPSE
The Nifty CPSE index, which represents the performance of public sector enterprises in India, has seen an intriguing uptick.
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Source: TradePoint, Definedge Securities
On technical charts, this index shows some key bullish patterns that suggest a potential breakout. For those familiar with the Point and Figure (P&F) charting technique, the formation of a bullish anchor column and the Double Top Buy (DTB) pattern strongly signals a bullish reversal, indicating that a positive trend may be on the horizon.
The D-Smart Line indicator is closely monitored to add further weight to the bullish outlook. This tool is designed to highlight breakout levels and trend shifts. Currently, the breakout point for the Nifty CPSE index is pegged at 6,310. A close above this level would trigger a surge in bullish momentum, confirming the positive sentiment that has been building.
The All Chart Matrix is useful for traders looking to identify the best CPSE stocks to capitalise on this potential bullish trend.
Developed by Definedge, the All Chart Matrix is a unique feature that scores stocks based on their technical setups across multiple timeframes. By evaluating price action in different timeframes—short, medium, and long—the matrix assigns a score of 1 for bullish price action and 0 for bearish.
Source: RZone, Definedge Securities
Let us discuss the chart of the top two performing stocks – NBCC and Oil India.
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