Medium Term Investing Idea - CPSE ETF - ( Exchange Traded Fund)The CPSE ETF is made up of equity investments in 12 of India’s largest public sector companies. Owned 55% or more by the Government of India and listed on the NSE.
It is an Index fund. CPSE ETF Full form is Central Public Sector Enterprises. It's an Exchange, Traded Fund.
The government of India wanted to divest some of its holdings in CPSE and decided to divest such funds through ETF.
Below are the 12 of India’s largest public-sector companies, where CPSE ETF money is being invested.
Bel Coal India Cochin Shipyard NBCC NHPC NCL India NMDC NTPC Oil India Ongc Power Grid SJVN
Since the last few weeks CPSE companies showing good upside movement. You can track the Nifty CPSE Index.
Here is a technical overview of the Nifty CPSE Index and it's 12 constituent.
NIFTY CPSE INDEX - It's making higher highs and higher lows, an uptrend, and broke out of consolidation.
1) NSE:BEL - It is in strong uptrend, doubled form it's march 2020 low. One can apply pullback trading stategies on this stock.
2) NSE:COALINDIA - A government's cash cow. Paying healthy dividends. Coal India awaiting triangle breakout.
3) NSE:COCHINSHIP - Price is trading above previous resistance zone. Buy on pullback can be applied on this stock.
4) NSE:NBCC - Making higher high - Higher lows, Uptrend. Price is approaching trendline resistance.
5) NSE:NHPC - Price brekaout previous resistance.
6) NSE:NLCINDIA - Price breaking mltiyear trendline resistance.
7) NSE:NMDC - Clear uptrend is visible. Making higher highs and Higher Lows.
8) NSE:NTPC - Ntpc showing good momentum. It a clear uptrend. Price breaking trendline resistance.
9) NSE:OIL - Price is breaking out of a consolidation.
10) NSE:ONGC - Price breaking bullish flag formation.
11) NSE:POWERGRID - Price making higher highs - higher lows, an uptrend.
12) NSE:SJVN - Price breaking out of a triangle.
Above is the drilling down of the Nifty CESE Index. Idea is to invest in NSE:CPSEETF for a medium-term.
CPSE ETF is Trading at 19.45/ Expecting 20 to 25% return over the medium-term. On can track the Nifty CPSE Index for stop-loss and trade management.
Below is an exit rule that I will track if anything goes wrong. We must have an exit plan as well if the trading idea or investment idea goes wrong. Risk management is a must in trading and investing. We are trading and investing in probabilities if our investing goes south we need to have an exit plan. This is not a trading idea, so a clear level if the stop-loss is not required here. Because there can be multiple entries in investing and that depends on your investing style such as investing timeframe, position-sizing, and capital allocation, and risk appetite. However, in trading and investing, we must have an exit plan.
Below is a Stiff Pitchfork tool. Price is trading above the median line. Upper and lower median lines are set a specified number of standard deviations away from the median.
One can use the breakout of a lower line as a stop-loss.
Your comments and criticism are welcome.
Thank you.
