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We recommend a buy in Torrent Power from a short-term perspective. We observe that the stock’s medium-term downtrend, that began from its January 2008 high of Rs 269, got arrested at around Rs 93 in late March. The stock had almost lost 65 per cent from its January high to March low. However, after finding support around Rs 93 level, the stock commenced to move up progressively. During this up move, Torrent Power penetrated the medium-term down trendline and later on crossed over the 21-day moving average, indicating signs of bullishness. The daily momentum indicator is on the verge of entering the bullish zone from the neutral region. The moving average convergence and divergence is steadily rising towards the positive territory. From a short-term perspective we are bullish on the stock. We expect the stock to move up to our price target of Rs 145 in the upcoming sessions. Investors with short-term perspective can buy the stock while keeping the stop-loss at Rs 119.

Yoganand D.

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