GVK Power has support at Rs 13, says Bothra

Kunal Bothra, Sr Technical Analyst, LKP is of the view that, GVK Power & Infrastructure has support at Rs 13.

Bothra told CNBC-TV18, "IRB Infrastructure Developers, it’s not a bottom formation as such because for a bottom formation to happen you actually need the price to probably consolidate on a lower kind of a formation, but what’s happened in IRB is it’s rising very slowly and very gradually. So I would not call this as a bottom formation at this point. Probably if the stock continues to trade below Rs 110 or Rs 105 levels then there might be a case that with volumes probably dying in the next few weeks or so the stock might just have a bottom formation, but at this point it’s clearly not a bottom formation." He further added, "GVK Power & Infrastructure has a tendency to show one or two days of odd performances showing very good price performance, but after that the momentum just fades away and that’s what happening in this stock as well. I believe that Rs 13 on GVK is a crucial support. I think if it continues to hold above Rs 13 one can initiate long positions there, but with a very tight stop loss of Rs 12.5 for a target of Rs 14.5." Disclosure: I don’t have any personal holdings in any of the stocks discussed, but at LKP, we keeping recommending same to our clients.