Buy Power Grid Corporation with stoploss of Rs 102: IIFL
IIFL has advised traders to buy Power Grid Corporation with stoploss of Rs 102.
By ET Bureau |
MUMBAI: IIFL has advised traders to buy Power Grid Corporation with stoploss of Rs 102.
After hitting an intermediate top of Rs 120 in the month of April, the stock witnessed correction of almost 18%. However, in the last one month, declining trend stabilized and led to formation of descending triangle pattern with amplitude of Rs 8.
Though triangle is considered as a continuation pattern, a breakout above Rs 104 calls for extension of pullback towards Rs 112, which is also 61.8% Fibonacci retracement of decline from Rs 120 to Rs 100.
Appearance of Morning Star pattern on Monday followed with Bullish Piercing Line pattern yesterday, will support the short term uptrend in the counter. We advise buying stock above Rs 104.75 with stoploss of Rs 102 for target of Rs 111,” the report said.
Note: Trading idea valid for time-period of 1-3 days.
After hitting an intermediate top of Rs 120 in the month of April, the stock witnessed correction of almost 18%. However, in the last one month, declining trend stabilized and led to formation of descending triangle pattern with amplitude of Rs 8.
Though triangle is considered as a continuation pattern, a breakout above Rs 104 calls for extension of pullback towards Rs 112, which is also 61.8% Fibonacci retracement of decline from Rs 120 to Rs 100.
Appearance of Morning Star pattern on Monday followed with Bullish Piercing Line pattern yesterday, will support the short term uptrend in the counter. We advise buying stock above Rs 104.75 with stoploss of Rs 102 for target of Rs 111,” the report said.
Note: Trading idea valid for time-period of 1-3 days.
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