A Power PSU Stock to Lift Your Trading Mood in Falling Markets

  • Stock Market Analysis

About the company:

Power Grid (NS: PGRD ) is an Indian statutory corporation under the jurisdiction of the Ministry of Power, Government of India. The company is engaged in the transmission of bulk power across different states of India. PGCI transmits about 50% of the total power generated in India on its transmission network. The stock is trading at a 7.71% discount to its 52-week high level. The 52-week range is Rs 210 – Rs 137.

Technical observations:

One week time frame: (Chart 1)

On a weekly time frame, from the chart below, we can see that PGCI stock is trading in a Bullish Channel. You should observe that the scrip has ably taken support on the 50-day EMA line. The share has bounced back in the last couple of weeks from Rs 178 which is its immediate support. We anticipate the scrip to move upwards supported by higher volumes. Relative Strength Index (or RSI) is above 55 and the Moving Average Convergence Divergence (or MACD) line is in process of crossing the signal line from below. It indicates positive momentum on the stock. Long-term investors can enter at current levels. They should maintain the stop loss at Rs 178 on a weekly closing basis.
PGCI1
One day time frame: (Chart 2)

On a daily time frame, PGCI stock has made a Rounding Bottom formation. The scrip is also in process of testing an important resistance level of Rs 196. We anticipate the share to break out of this resistance level aided by an increase in volumes. RSI is above 55 and the MACD line is above the signal line. It indicates positive momentum on the stock. Positional traders can enter only once the stock crosses Rs 196 level and stays above it. They should keep a stop loss at Rs 185 on a daily closing basis.
PGCI2
Conclusion:

We expect the PGCI scrip to maintain positive bias and head higher in the coming sessions. Short-term traders should enter around current levels. However, they should maintain a strict stop loss at Rs 191 on a daily closing basis.

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  • Hwhwh Vwbhw @Hwhwh Vwbhw
    wt would be the future of Indian power corporation DPSCLTD I bought it at 18 and holding it for mre than 6 months plz
    Like 0

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