Technical Analysis

Kalpataru Power Transmission (₹392.4): Buy

Gurumurthy K BL Research Bureau | Updated on December 31, 2018 Published on December 31, 2018

  The outlook for the stock of Kalpataru Power Transmission is positive. The stock surged 3.8 per cent on Monday breaching the key resistance level of ₹389 and has closed on a strong note. Though the 200-DMA resistance is near current levels at ₹393, the stock is likely to breach this hurdle in the coming sessions. Immediate supports are at ₹388 and ₹385 and the next key support is in the ₹380-₹378 region. Though an intermediate dip to test these supports cannot be ruled out, the downside is likely to be limited as fresh buying interest may emerge at lower levels. Also, the bias is bullish on the chart.

The 55-day moving average is on the verge of crossing over the 100-day moving average. This is a positive signal. An upmove to ₹406 is likely in the near-term. A strong break above ₹406 can take the stock higher to ₹435 and ₹450 over the short term. Traders can go long at current levels and also accumulate on dips at ₹388 and ₹385. Stop-loss can be placed at ₹375 for the target of ₹435. Revise the stop-loss higher to ₹398 as soon as the stock moves up to ₹405.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on December 31, 2018
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