"We are expecting an upside move in the counter up to to the level of Rs 220-225 while downside support comes at Rs 195 level," says Sumeet Bagadia, Associate Director, Research at choiceindia.com.
On a monthly chart, after giving a correction from All-time high level, Power Grid Corporation of India has halt its down side movement at 189 level which is 38.2 percent Retracement of its previous rise from Rs 129 level to Rs 226 level which suggest a bounce back move in the counter.
On a weekly chart, the stock has given a break out of its range bound movement in which it was trading from past many weeks as well as it has managed to trade above its 21-Weekly Exponential Moving Average which is placed at Rs 198 level which indicates a reversal sign and the stock may see a northward movement in the counter.
Moreover, on an daily chart, the stock is trading above with a positive crossover of 20*50 Hourly Moving Averages which show a positive trend in the stock.
A weekly indicator RSI reading is at 57.71 level with a positive crossover, apart from this, the RSI has given a breakout of its Horizontal line and made a decent high which points out for a positive breath in the stock.
The MACD indicator has given a positive crossover above its 0 line with three bar up in histogram which bring a strong conviction toward a bull run in the stock.
Based on the above technical structure, we are expecting an upside move in the counter up to to the level of Rs 220-225 while downside support comes at Rs 195 level.Disclaimer: The author is Associate Director, Research at choiceindia.com. The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.The Great Diwali Discount!
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