Torrent Power (₹254.1): Buy

Investors with a short-term perspective can buy the stock of Torrent Power at current levels. The stock has been in a near-term rally since taking support at ₹214, over the past five trading sessions. The stock gained almost 5 per cent on Wednesday, breaching a key resistance as well as 200-day moving average at ₹250 levels, thereby strengthening the current up move.

The stock trades well above its 21- and 50-DMAs as well. Moreover, the stock appears to have breached its medium-term downtrend-line that was intact from the January high of ₹305. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continue to feature in the neutral region. Both the daily and weekly price rate of change indicators hover in the positive territory implying buying interest. There has been an increase in daily volume over the past four trading sessions.

Overall, the short-term outlook is bullish for the stock of Torrent Power. The stock can continue to move higher in the upcoming trading sessions with a minor pause around ₹260. An emphatic rally beyond this level can take the stock higher to the short-term targets ₹264.5 and ₹270. Traders can buy with a stop-loss at ₹248.5.

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

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