The stock of NHPC Limited has been gradually gaining since the beginning of the year even though it has been witnessing consolidation phases frequently. The stock has gained a little over 33 per cent year-to-date and a majority of the appreciation occurred since mid-August. After cracking the resistance at ₹27.20 in early September, the stock went sideways briefly and then rallied. It marked a fresh 52-week high of ₹30.35 on Wednesday. The scrip looks bullish, and this is supported by the RSI and the MACD which remains in the positive territory. So, going ahead, the stock is likely to gain more in the coming days and could reach ₹32.60 in the near-term. While there can be a pause at this level, the scrip is expected to rally past this level and touch ₹34.30.
Given the above factors, traders can consider buying the stock and place an initial stop-loss at ₹29. Once the stock reaches ₹32.60, book partial profits, revise the stop-loss to ₹30 and look for the next target at ₹34.30. Stock will remain bullish until it stays above ₹27.20.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)