Reliance Power Sell

We recommend a sell in the stock of Reliance Power from a short-term perspective. It is apparent from the charts that the stock was on an intermediate-term uptrend from March low of Rs 89 to its June high of Rs 210. Triggered by negative divergence and presence of significant long-term resistance around Rs 200, the stock resumed its long-term downtrend which has been in place since February 2008 high of Rs 374. Moreover, since June it has been on an intermediate-term downt rend. In early October, the stock breached its 21-day and 50-day moving averages and is hovering way below them. Both the daily relative strength index (RSI) and moving average convergence and divergence (MACD) indicators are featuring in the bearish territory. The weekly indicators are on the verge of entering in to the bearish territory. Our short-term forecast on the stock is bearish. We expect the stock’s downtrend to prolong until it hits our price target of Rs 124 in the approaching trading sessions. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 146.

Yoganand D.

Source : businessline

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TA - GIPCL

GIPCL

Can I hold Gujarat Industrial Power at current level? J Rajagopalan

Gujarat Industrial Power Company (Rs 61.4): GIPCL has recorded a very sharp rally since March this year that has taken the stock up from Rs 40 to Rs 73. The stock has already achieved its first short-term target that is at Rs 71.

A reversal is possible from this level. Investors with a short-to-medium term perspective can hold the stock with a stop at Rs 58. The other strategy can be to exit at current levels and re-enter on a strong break above Rs 74. Next target for the stock is Rs 90. The range for the rest of the year is likely to be between Rs 50 and Rs 90.

Source : Businessline 19-04-09

Our Recommendation :

Our Research Team Views :

Day High Low Rs.67-60
Monthly High Low Rs.42-67
6M H/L Rs. 40-67

This share has risen sharply more than 70% in the last 6 months. The following
are the ideal ranges for buying and selling :

Buying Range : Rs.42-45
Selling Range : Rs. 60-67

Wait for the price to the buying range on correction in the stock markets.

Holding period : 12-18 months
Returns expected : 100% plus

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Equity Research Team

Intelligent Investor -
Invest Advisory Arm of

Ravina Consulting
Bangalore India

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