Torrent Power rose 5.7 per cent leapfrogging above a key resistance at ₹96 on Wednesday. This gives traders with a short-term perspective an opportunity to buy the stock at current levels. Since finding support at ₹80 in March, the stock has been on a steady short-term uptrend. This uptrend has been backed by good volumes, more so over the past one month. Last week, the stock breached its 200-day moving average decisively and is currently hovering well above it. The daily indicators and oscillators are featuring in the bullish zone backing the short-term uptrend. Both daily and weekly price rate of change indicators are hovering in the positive terrain indicating buying interest. The next resistance is further away. Therefore, the stock can extend its current uptrend in the forthcoming sessions and reach the price target of ₹106.5 and then ₹109. Traders can buy the stock with a stop-loss at ₹99.7.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)