Short Term Power Stock: Power Grid Stock looks Attractive, We Recommend Buy on Every Fall

Power Grid Corporation of India Ltd. is the leader in power transmissions segment in India, having huge network of its power transmission. It hit the capital markets i.e NSE and BSE on 5 October in year 2007. Stock charts suggests us that the stock is trading with bullish bias as we are seeing stock is now trading firmly above 100 EMA on POWERGRID. Also technical indicators suggest us that there was bullish crossover on slow stochastic, this is also in the direction of our trade. Well one more factor that favors our trade is huge trading volumes that we have witnessed with range breakout. So our advice is to keep looking for buying opportunities as long as the price action is above the 97 level, So we have found this buying opportunity near 102 level for trading target as 118 and 124 levels. It is also advised to keep a stop loss near 95 level just for portfolio protection.

Looking at the fundamentals of this company, we see that this is very strong company and there should be more upside in this stock than the downside. So this should be taken as good opportunity for investing and from trading prospectus one should be trading on futures contracts. Also it is not advisable to trade the options (CALL/PUT) contracts.