Technical Analysis

Power Grid Corporation of India (₹206.4): Buy

Yoganand D | Updated on February 03, 2021

BL Research Bureau

The stock of Power Grid jumped 6 per cent with above average volume on Wednesday, breaking above a key long-term barrier at ₹200 and managed to close above another resistance at ₹204. This rally provides investors with a short term perspective an opportunity to buy the stock at current levels. After a short-term downtrend in the month of September 2020 the stock found support at ₹154 in mid-October.

Triggered by positive divergence, the stock changed direction and has been on a medium-term uptrend. Key support at around ₹184 had cushioned the stock in late December and again in late January 2021 from which the stock had bounced up strongly. The recent rally has surpassed the 21- and 50-day moving averages. There has been an increase in volume over the past two sessions.

Further, the daily as well as the weekly relative strength indices has entered the bullish zone from the neutral region, backing the uptrend. Outlook is bullish for the stock. Targets are ₹215 and ₹219. Traders can buy the stock with a stop-loss at ₹202.

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

Published on February 04, 2021

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