A 'Powerful' PSU Stock to Boost Your Trading Gains

  • Stock Market Analysis

About the company:

SJVN (NS: SJVN ), a PSU (Public Sector Undertaking) is involved in hydroelectric power generation and transmission. It was incorporated in 1988 as Nathpa Jhakri Power Corporation, a joint venture between the Government of India and the Himachal Pradesh Government. The stock is trading very close to its 52-week high level. The 52-week high and 52-week low range is Rs 30.80 – Rs 21.20.

Technical observations:

One week time frame: (Chart 1)

On a weekly time frame, you should note that SJVN stock has made a Long-term Rounding Bottom pattern. We can see that the scrip is currently trading very close to its 3-year high level. In June 2021, the share tested a resistance level of Rs 30 and then pulled back to the 50-day EMA level. Since then, it bounced and is now again testing the resistance level in the current week. The current week’s upward move is accompanied by increased volumes. Relative Strength Index (or RSI) is above 65 and the Moving Average Convergence Divergence (or MACD) line has crossed the signal line from below. It indicates positive momentum on the scrip. Long-term investors should enter at the current level by keeping a stop loss at Rs 24 on a weekly closing basis.
SJVN1
One day time frame: (Chart 2)

On a daily time frame, you should observe that SJVN stock has broken out of a Cup and Handle pattern. Higher volumes accompany the breakout. We can also see that the share has been ably taking support on the 50-day EMA line for the last 10 months. RSI is above 80 and the MACD line is also above the signal line which indicates positive momentum on the share. Positional traders should enter on a pullback close to the Rs 30 level. They should maintain the stop loss at Rs 26 (previous swing low) on a daily closing basis.
SJVN2
Conclusion:

We believe SJVN stock to maintain positive bias and head higher in the upcoming trading sessions. Short-term traders should take a position at the current level while keeping a strict stop loss at Rs 29 on a daily closing basis.
 

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  • Sumeet Chatterjee @Sumeet Chatterjee
    Sir, would you kindly recommend a good book on pullback trading? A few options on the internet but not sure which of them will explain concepts well. Thank you.
    Like 0
  • Sumeet Chatterjee @Sumeet Chatterjee
    Sir, would you kindly recommend a good book on pullback trading? A few options on the internet but not sure which of them will explain concepts well. Thank you.
    Like 0
  • ROHITH BLC @ROHITH BLC
    sir today Nifty range..?
    Like 0
  • Rajesh Pattnaik @Rajesh Pattnaik
    You are absolutely right Sir in Short term it can retest 55 level. only Short term not for long term beyond 10 years.
    Like 2
  • Rajesh Pattnaik @Rajesh Pattnaik
    You are absolutely right Sir in Short term it can retest 55 level. only Short term not for long term beyond 10 years.
    Like 1
  • kpk kumar @kpk kumar
    I'm planning for 10years if this is not good which one is better to hold upto 10years ??
    Like 0
    • swadesh routray @swadesh routray
      tata power
      Like 1
    • swadesh routray @swadesh routray
      tata power
      Like 0
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      @swadesh routray Agree, ABB India and Torrent Power as well.
      Like 0
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  • kpk kumar @kpk kumar
    sir ji can I buy today 5000 quantity and if i hold 10years how much can I get ???
    Like 0
    • Jash Jacob @Jash Jacob
      How much will you get will be whats the price of it in 10 years 🤣
      Like 1
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  • NIRAV JARIWALA @NIRAV JARIWALA
    sell
    Like 1
  • kpk kumar @kpk kumar
    can I buy SJVN NOW ?? Or need to wait sir ?? pls reply
    Like 0
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      @kpk kumar you may
      Like 0
    • sathish bala @sathish bala
      you can buy now , it's good for upmove
      Like 0
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  • kpk kumar @kpk kumar
    can I buy SJVN NOW ?? Or need to wait sir ?? pls reply
    Like 0
  • Ajit Mitkari @Ajit Mitkari
    sir ji DMart liya hai 5400/- me use nikalu ya rakhu???plzz help
    Like 0
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      @Ajit Mitkari let it be for next two quarters
      Like 0
    • Ajit Mitkari @Ajit Mitkari
      okk sir, thank u so much sir🙏
      Like 0
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  • Sameer Kanitkar @Sameer Kanitkar
    Good Observation on the Chart. Please allow me to Share my findings, attaching the Chart as reference. There is powerful Reversal pattern, supported by DOW Theory. It is INV H and S, I am trying to post the chart, but website doesn't seem to be happy at the moment.
    Like 1
    • Sameer Padole/Investing.com @Sameer Padole/Investing.com
      @Sameer Kanitkar okay. That's good. Thanks for your observations
      Like 0
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  • Prime TV @Prime TV
    🙏🙏
    Like 0

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