Power Grid Corporation of India meets the trend template of Mark Minervini

Power Grid Corporation of India meets the trend template of Mark Minervini

by 5paisa Research Team Last Updated: Dec 14, 2022 - 09:41 am 32.3k Views

What a surprising first day of financial year 2022-23, it turned out to be! As the bulls started the new financial year with a bang with Nifty and Sensex jumped over 1 per cent.

Talking about surprises, there were number of stocks which showed a stellar move, however, one stock which grabbed our attention was Power Grid Corporation of India.

The stock of Power Grid advanced nearly 4 per cent and it contributed 5 points to Nifty’s kitty. The stock marked a fresh high and formed an opening bullish Marubozu candle, this candle has no lower shadow as the open and low are identical. Opening bullish marubozu candle indicates an extreme bullishness as after opening the price starts to increase, forming a long body without lower shadow.

As the stock is trading at fresh highs, it is above all the short and long-term moving averages. The stock is meeting Mark Minervini’s trend template. It is trading above 40, 30 and 10-weekly averages and all of them are trending up. At the same time, there is a desired sequence. Along with this, the stock above 50-weekly average and 20-period RSI, is above 60-level and is in a super bullish zone. It is also meeting Guppy Multiple Moving Average (GMMA) set up by Daryl Guppy. This structure indicates that the stock is in clear uptrend.

The stock is in a clear uptrend and the trend strength is extremely high. The Average Directional Index (ADX), which shows trend strength, is at 25.77 on a daily chart and 43.11 on a weekly chart. Generally, above 25 level it is considered as a strong trend. In both time-frames, the stock is meeting the criteria. Also, on the daily chart, the +DMI is above the -DMI and ADX and it's in a rising trajectory.

Considering the robust technical structure of the stock we believe the stock is likely to move northwards in the coming trading sessions. Meanwhile, on the downside, the 10-week moving average which is placed around Rs 209 is likely to provide the cushion in case of any turbulence in the market.

How do you rate this article?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account

Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest News
Sahana Systems IPO GMP (Grey Market Premium)

Sahana Systems IPO worth ₹32.74 crore comprises entirely of a fresh issue of shares by the company. The price band has been fixed in the range of ₹132 to ₹135.

  • Jun 08, 2023
Spectrum Talent Management IPO GMP (Grey Market Premium)

Spectrum Talent Management IPO worth ₹105.14 crore, comprises entirely of a combination of a fresh issue of shares and an offer for sale (OFS) by promoters and early shareholders.

  • Jun 08, 2023
IKIO Lighting IPO GMP (Grey Market Premium)

IKIO Lighting IPO worth ₹607 crore comprises of an offer for sale and also of a fresh issue of shares. The offer for sale (OFS) component is by the promoters and early shareholders of the company.

  • Jun 08, 2023

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number