Chartist Talks: Sudeep Shah remains bullish on these 3 PSUs, flags caution on Sagility

Sudeep Shah, the Head - Technical Research and Derivatives at SBI Securities remains bullish on three PSUs - BHEL, Bharat Electronics and Canara Bank, but signals caution on Sagility after its 23 percent rally in the month of October.

According to him, BHEL’s breakout above its trendline, supported by rising volumes and back-to-back closes above the upper Bollinger Band, reflects strong bullish momentum, while breaking out of a Rs 425–390 range with heavy volumes, confirming a strong uptrend in Bharat Electronics.

In case of Canara Bank, technical indicators remain favourable, with no signs of reversal yet. As long as the stock holds above key short-term supports, the trend remains positive, and further upside can’t be ruled out in the near term, he said in an interview to Moneycontrol.

Are you turning cautious on the market?

Nifty spent the week consolidating after an exceptional October rally of over 1,500 points from 24,588. The index neared its record high but lost steam amid global uncertainty and profit booking. A Shooting Star candle on the weekly chart signaled exhaustion after the steep rise. The index moved in a narrow 26,104–25,711 band for 11 sessions, with RSI cooling to 57.84, reflecting waning momentum.

Despite this, the broader trend remains intact as ADX stays strong. Support lies at 25,520–25,500; a break below may drag it to 25,300. Resistance persists at 26,100–26,150, above which bullish momentum could resume.

Do you think the Bank Nifty has completed its rally for the time being? Would you rule out the possibility of a major rally going forward?

Bank Nifty consolidated after hitting a lifetime high of 58,578 last week, indicating fatigue at elevated levels. Profit booking near 58,600 capped gains, forming a bearish candle with a long upper shadow. The weekly chart pattern suggests waning bullish strength, though overall sentiment remains positive.

RSI has eased from 76.64 to 62.29, while MACD and ADX confirm that the broader trend is intact. Support lies at 57,600–57,500, aligning with the 23.6 percent Fibonacci retracement. Resistance is placed at 58,400–58,500, and a sustained close above this zone could revive momentum toward 59,000–59,500. The structure remains bullish despite short-term consolidation.

Which two stocks have caught your attention for the upcoming week?

Ajmera Realty and Infra India

The stock has broken out of a downward-sloping trendline with strong volumes, signaling bullish intent. Its rebound above the 20-DEMA shows underlying strength, while RSI above 60 and widening DI lines confirm improving momentum. A MACD crossover adds to the positive setup. Accumulate in the Rs 1,072–1,067 zone with a stop-loss at Rs 1,035 for an upside target of Rs 1,145.

Bharat Electronics

BEL has broken out of a Rs 425–390 range with heavy volumes, confirming a strong uptrend. The RSI is rising, price trades above key averages, and a close above the Bollinger Band shows renewed buying interest. Accumulate in the Rs 426–421 zone with a stop-loss at Rs 410 for a near-term target of Rs 455.

From a technical perspective, would you advise adding positions in BHEL and PB Fintech, both of which have seen strong rallies recently?

Both BHEL and PB Fintech remain strong technically after clear breakouts. BHEL’s breakout above its trendline, supported by rising volumes and back-to-back closes above the upper Bollinger Band, reflects strong bullish momentum. MACD crossover and rising histogram bars support this strength.

Similarly, PB Fintech has broken key resistance levels and is trading above crucial moving averages. Its RSI trend and MACD above zero confirm continued upward bias. Overall, both counters remain in robust uptrends, and the technical setup suggests potential for further gains. Traders may consider buying on dips with proper risk management, as the structure continues to favor the bulls.

Do the charts indicate further upside potential in Canara Bank, which has maintained its uptrend for another month?

Canara Bank continues its strong uptrend, helping lift the PSU Bank Index to a new high of 8,272. After a channel breakout in mid-September, the stock has been forming higher highs, with the 20-day EMA providing steady support. A recent 6 percent surge backed by volumes highlights sustained buying interest.

The MACD crossover and a close above the upper Bollinger Band confirm ongoing bullish momentum. Technical indicators remain favourable, with no signs of reversal yet. As long as the stock holds above key short-term supports, the trend remains positive, and further upside can’t be ruled out in the near term.

Does Sagility India appear overbought at the current levels?

Sagility has surged 23 percent since early October, trading well above its key moving averages. However, indicators suggest overbought conditions. ADX at 31.59 signals strong trend strength, while RSI hit 80.82 before cooling to 69.64, marking extreme levels last seen in January 2025.

The stock breached its previous high of Rs 56.40 but failed to sustain, forming a bearish engulfing candle on the daily chart — a potential reversal signal. These factors indicate that the stock may face near-term profit booking or a consolidation phase after its sharp rally, even though the broader trend remains structurally strong. Caution is advised at current levels.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.