Exicom Tele-Systems IPO.Explore

NIFTY CPSE Index hits a fresh all-time high; what’s the technical outlook?

08 May 20232 mins read by Angel One
Fundamentally, the constituents of this sector are high dividend stocks.
Featured Image
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Monday is turning out to be a marvelous day of trading for the bulls on the D-Street as the frontline gauges Nifty50 and Sensex have rallied over 1%. The Nifty50 index is still about 600 points away from its all-time high which was registered in the month of December last year. However, the Nifty Central Public Sector Enterprises (Nifty CPSE) which comprises of 12 stocks has registered a fresh all-time high on Monday.   

The Nifty CPSE index is trading up by 0.86% and the index has marked a fresh all-time high by moving in a staircase manner since March 2020 low. Recently, it has broken out of a 13-week flat base. For the last three weeks, it has been recording above-average volume. It has not developed any negative divergence on any timeframe, which is a positive factor. It is trading well above all key moving averages. The 10, 30, and 40-week averages are in an uptrend. The 30-week average is above the 40-week average and the 10-week average is above the 30-week average. This sequence of averages shows a strong uptrend in the stock.   

The weekly 14 periods RSI (69.41) cleared the prior highs and is in a strong bullish zone. The MACD is also showing strong bullish momentum. The next meaningful target for the index is placed at 3251, which is a 127.6 % extension level. The medium-term target (3-6 months) is placed at 3473.   

Fundamentally, the constituents of this sector are high dividend stocks. The institutions and the dividend-based mutual fund scheme use these as safe bets. Be with a positive bias as long as the trend continues. Any consolidation or a pullback is an opportunity to invest in these stocks as some of them offer good dividend yield and technical structure is strong.   

Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage on Equity Delivery

Get the link to download the App

Send App Link

Enjoy Zero Brokerage on
Equity Delivery