POWERGRID LTD.
Again a Player in Power Sector, Big Consolidation over a Few years gave a breakout and price moved to current levels after a long slow development. in the process price developed a big Bullish Formation called "Cup and Handle Formation" The Neckline of the formation is placed at a level of 158 approx. and the low of the cup area is placed around 93 levels, it was a big support for the small range consolidation over few years. The Neckline and Low of Cup Distance is 158-93 = 65/- Rs.
If the Price breaks above 158-160 levels and holds above the level, We will get upside of around Rs. 65/- above 160 level. giving a price target of 225+, it may not be a One Side Journey as the price will come back to retest the level of breakout after a small upside. Once Neckline is retested, Price will fly to the Target, and it will be a fast move.
The Price expectation is supported by the current Governments work on Infrastructure and Power Sector. It will boost the business and Balance Sheets of these Power Sector Companies.
Our Recommendation in Short ..
BUY POWERGRID Ltd. Above 160 Levels, with Stoploss of 150 and Take Profits of 190 - 220+
With Entry around 160, Risk of Rs.10 and Reward of Rs. 30 at Take profit level of 220.. gives you a Risk : Reward ratio of 1:3 and with take profit of 190, the Reward will be Rs. 60 giving approx Risk Reward of 1 : 6 and For a Stock of 160 Rs. The upside is seen around 40% at 224 levels.
Contact details :
WhatsApp : +91 8275 298 208 / Mail : 4x.magician@gmail.com
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Disclaimer:
The Analyst does not hold any positions or does not have any vested interest in the recommended stock. Follow Strict Risk Management and Consult your Investment Advisor for more details.
The Analyst is a SEBI Certified Investment Advisor, Global Market Expert and Fund Manager for Clients across the World. He is having experience of 8 years in Indian Equity Market and Similar experience in Global Market.
