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Investors with a short-term perspective can buy the stock of Power Grid Corporation at current levels. Following a near-term decline in late January, the stock recorded a new 52-week low at ₹177 and found support at this level. Key support in the band between ₹177 and ₹181 continued to provide base for the stock thereafter.
Last week, the stock took support at this zone and began to trend upwards. Currently, the stock is in a near-term rally. Over the past two trading session it has gained 7 per cent and has decisively breached its 21- and 50-DMAs. Also, the stock has managed to close above the 200-day moving average line.
The daily RSI has entered the bullish zone from the neutral region and the weekly RSI is charting upwards in the neutral region. Notably, both the daily as well as the weekly price rate of change indicators have entered the positive terrain implying buying interest.
Though the stock faces a key resistance at ₹200, the bullish momentum can make it surpass this barrier and trend higher. The short-term targets are ₹205 and ₹209 in the ensuing trading sessions. Traders can buy with a deep stop-loss at ₹191.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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