i recommend a buy in Power Grid Corporation of India from a short-term perspective. It is evident from the charts of the company that the stock has been on an intermediate-term downtrend from its 52-week high of Rs 167 marked on November 19, 2007. However, the stock found support at around Rs 95 recently and bounced off. The positive divergence in the daily momentum indicator supports the stock's recent bounce.
Following this, the stock breached the medium-term down trendline, which is drawn from the January peak of Rs 155.
On February 27, the stock gained momentum by surging more then 5 per cent on good volume. The stock is currently trading well above the 21-day moving average. The daily momentum indicator is rising in the neutral region towards the bullish territory. Our short-term outlook for the stock is bullish and we expect the stock to move up to our target price level of Rs 123 in the upcoming days. Investors with a short-term perspective can buy the stock while keeping the stop loss at Rs 99.