2 PSU stocks to buy as Nifty PSE index signals a positive trend

On May 14, the Nifty PSE Index closed above 200-day Double Exponential Moving Average (DEMA) on 14th May 2025 for the first time since 30th August 2024, signaling a shift in the primary trend from negative to positive.

The breach of this level signals suggests bulish trend and potential for further upward momentum.

Kunal Kamble, Sr. Technical Research Analyst at Bonanza noted that the Nifty PSE Index has closed above its 200-day Double Exponential Moving Average (DEMA) on 14th May 2025 for the first time since 30th August 2024, signaling a shift in the primary trend from negative to positive.

The index since the close of May 14, 2025 has gained over 3 per cent in as many as 5 sessions taking today's day high into account and after losses on the previous day.

Additionally, the index has confirmed a breakout of an Inverse Head and Shoulders pattern, further supporting a reversal into an uptrend. On the momentum front, the Relative Strength Index (RSI) is moving in an upward trajectory, indicating strengthening bullish momentum, added Kamble.

The Average Directional Index (ADX) is also rising steadily post the index’s move above the 200 DEMA, suggesting an increasing trend strength.

From a price action perspective, the index appears attractive above the 10,072 level. Sustained trade above this threshold may trigger renewed interest in PSE stocks, potentially leading to a sectoral rotation and increased fund flows into public sector enterprises.

Ajit Mishra – SVP, Research, Religare Broking meanwhile said that, tThe markets have been witnessing a recovery over the past month, and among the thematic indices, the Nifty PSE index has rebounded by ~25% from its March low of 7,956.45 and is currently trading around the 9,922 level. Additionally, the index has recently reclaimed its major long-term moving average — the 200-day exponential moving average (200 DEMA).

The outlook remains positive, with indications suggesting that the recovery may continue to strengthen. The index could potentially move towards the 10,400 level, with a strong support zone seen around 9,400–9,650 levels. Participants are advised to maintain a stock-specific approach and focus on counters that are showing relatively stronger performance within the pack."

PSU stocks to buy

Kamble is bullish on Coal India and NBCC. Kamble suggests buying Coal India above Rs 420 and NBCC above Rs 120 per share.