Hopping onto the Energy Express

JC Parets
June 3, 2021

Over the past few days, we've seen the market resolve higher. With the new all-time high in place, we're seeing one sector witness growing strength.

Energy has been a part of the sectors that have been showing strength for some time now. However, there are a few stocks that are now joining the bandwagon of the 'breakout express' and this seems like a good time to jump aboard!

To start off, let's take a look at the Energy index and see what we've got there. Nifty Energy has clocked a new all-time on the Monthly timeframe. Needless to say, that is a big positive! So what are the levels that we're watching? Well, from a slightly longer-term view (we're looking at monthly charts, remember?), if Energy continues to chug on higher, we're looking at a target close to 23,825.

Click on chart to enlarge view.

Now let's dive into the stocks.

First up, let's take a look at a recommendation that has come up in our analysis in the past.

Gujarat Gas has been a part of our trade ideas as recently as the Quarterly Playbook. What we're seeing now, is a resumption in trend. This is the result of Energy breaking out of its minor consolidation. With the current price move that's coming through, Gujarat Gas is back on our list.

The indicator is in bullish momentum territory and the price has started to make a dash towards its target.

We are bullish above the level of 513, with a target near 713.

And now we have the Adani Group making an appearance. As usual. Adani Gas has breached its resistance of 1,385 and is now heading higher. There's no stopping this group and the only opportunities here have been that of jumping on a moving train.

The indicator is content in the bullish territory and we are positive above the level of 1,385 with a target near 2,190.

Here we have GAIL, which broke out above its resistance a couple of weeks back, and has managed to sustain at those levels. The price has moved out of a two-year base and looks ready for the next move up. We like to buy smiley-faces, and this is one right here!

We are bullish above the risk management level of 148, with a target close to 200.

Are there any stocks on our radar?

Sure there are. We have two stocks that we are tracking closely to see if we witness a breakout.

The first one here is ONGC.ONGC has been knocking on the door of its resistance for some time now. The indicator too is hinting at a possible positive move as its headed towards the bullish momentum territory once again.

The level to track here is 116. A breakout above 116 could take the price further towards 151. Furthermore, in case of a strong move, a breakout above 151 could take the price towards 215.

Next up is another name that has come up on our radar over the past few weeks. JSW Energy has been breaching its intermediate resistance levels comfortably one at a time. What we're keen on seeing is if this trend continues. The level of berakout we're tracking is 135. Amove above 135 could take the stock close to 200. The momentum is extremely positive too!

This was  a round-up of the Energy-Express. As this theme continues to play out both nationally and internationally, we could see further strength in these names and more!

This is another lesson in sector rotation. The strong sectors make way for themselves and continue to appear in varied methods of analysis.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

Filed Under