Power Grid Corporation –Buy- India Infoline
After hitting an intermediate top of Rs120 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 Rs8.
Though triangle is considered as a continuation pattern, a breakout above Rs104 calls for extension of pullback towards Rs112, which is also 61.8% Fibonacci retracement of decline from Rs120 to Rs100. 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 Rs104.75 with stoploss of Rs102 for target of Rs111.
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