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Torrent Power Technical Analysis #39: Sell | Target Rs 238 | Arijit Banerjee

OUR RECOMMENDATION

CMP#259.2
IdeaSELL
Sell Range267 – 260
Target248 – 238
StopLoss*268
Duration15 – 20 Trading Sessions
Potential Return^4 – 7%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
259.2SELL267 – 260 248 – 238 26815 – 20 Trading Sessions4 – 7%

# CMP on Apr 03, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 254.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Torrent Power formerly The Surat Electricity Company Limited, is an Indian utility company engaged in the business of power generation, transmission, and distribution of electricity in the states of Gujrat, Maharashtra, UP and Karnataka. This Ahmedabad based company also involved in the manufacturing of electrical cables. In Q4FY19, The company has posted net income of Rs.2924.80 crore and Net Profit of Rs.24.80 crore as against net income of Rs.2810.36 crore and net profit of Rs.221.25 crore in the corresponding period last year. The net Profit dropped by 88.79%.

Stock Data
NSE CodeTORRENTPOWER
SectorNifty Infra
52W High276.95
52W Low211.5
Face Value10
Relative Performance_Torrent Power vs Nifty Infra

TECHNICAL OBSERVATIONS (WEEKLY)

  • Presently, the stock price has placed near the Upper bound of a sideways range and based on historical price pattern we are expecting the price to fall off from here.
Torrent Power Weekly Chart
Torrent Power Weekly Chart

TECHNICAL OBSERVATIONS (DAILY)

  • The stock has formed Evening Star candlestick pattern which is a bearish reversal indication and giving a sign of a starting of the downward trend.
  • RSI have formed negative divergence on the daily chart, which indicates loss of buying momentum and a possible rise in a trend reversal.
Torrent Power Daily Chart
Torrent Power Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

The research analysis is prepared by Arijit Banerjee, CMT, CFTe. He is a veteran trader and an active investor having in-depth knowledge in financial market research, advanced technical analysis, market cycle, algorithmic trading and portfolio management. Arijit is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts, USA. SEBI, the regulatory body of Indian financial market also recognizes him as a Research Analyst (INH300006582).

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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