Investors with a short-term perspective can consider buying the stock of HPL Electric & Power which is trading well below its IPO price. After getting listed at around ₹190 in October 2016, the stock started to decline and recorded a new low of ₹74.2 in late November. It subsequently reversed direction and began to trend upwards. Since then, the stock has been on an intermediate-term uptrend. Following a narrow sideways movement in the range between ₹125 and ₹138 since early April, the stock emphatically moved above this range on Wednesday gaining 4.7 per cent with an above average volume.
The stock has gained 7.8 per cent for the week. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is charting upwards in the neutral region. Moreover, the daily as well as weekly price rate of change indicators are featuring in the positive terrain implying buying interest. Outlook is bullish for the stock of HPL Electric & Power. It can move higher and reach our price targets of ₹147.5 and ₹151 levels in the coming week. Buy the stock with a stop-loss at ₹138.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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