Shares of PowerGrid hit 1-1/2-year low, and technical charts suggested further downside. The stock fell as much as 1.44 per cent to Rs 184.5, lowest since January 3, 2017.
The power transmission company’s stock broke below a support at Rs 186.1, the 38.2 per cent Fibonacci retracement level of the uptrend from September 7, 2015 low to August 8, 2017 high. As long as Rs 186.1 is the resistance, the stock is expected to move towards Rs 178.4, the 100 pct projection level of the correction from August 8, 2017 high to February 1, 2018 low.
The stock's 50-day exponential moving average (EMA) had cut below its 200-day EMA on Tuesday, forming a “death cross” which is seen as a bearish signal. MACD is also negative and below its signal line. The stock had fallen 6.56 per cent so far this year as of Wednesday's close, compared with a gain of 1.34 per cent in the broader NSE Index.