Power Grid Corporation of India (₹192.7): Buy
The stock of Power Grid Corporation of India gained 1.7 per cent on Thursday, breaching a key resistance at around ₹190. This has strengthened the stock’s short-term uptrend.
Investors with a short-term perspective can buy the stock at current levels. Following a medium-term downtrend, from the May high of ₹217, the stock found support at ₹174 in late July. Triggered by a positive divergence in the daily relative strength index and moving average convergence divergence, the stock reversed direction in late July.
The stock has been in a short-term uptrend over the past two weeks. The recent rally has surpassed the 50-DMA and the stock hovers well above it. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region.
Short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹201 and ₹205 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹188.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)