GVK Power is still below moving average: Rajat Bose

Rajat Bose, rajatkbose.com (Technical Check) in an interview with ET Now talks about GVK Power stocks.

What is the call on GVK Power?

GVK Power stock, in about 5 to 6 trading sessions back, was facing its 50-day moving average, the exponential one. Yet it could not cross that and today with a 5% rise from the last closing levels, it was still at 17.85.

But the moving average is at 18.24. So, it is still below that moving average. With a positive news like this at least the 50-day moving average should be crossed and we need good volume backed high closed at the higher end of the prices beyond that moving average to suggest that this is now getting ready for a reversal.

I have a doubt that it would be able to do that because the kind of weakness that we are likely to see once Europe opens. We have seen during Asia opening weak, we suffered and during Europe opening weak, probably we would test lower levels. These kind of stocks which are otherwise weak would also continue to remain weak.

Maybe there would be a test of that 50-day moving average but, it would not be able to clear that. So, initially not much to be seen in this.