Power Grid Corporation of India meets the trend template of Mark Minervini
![Power Grid Corporation of India meets the trend template of Mark Minervini Power Grid Corporation of India meets the trend template of Mark Minervini](https://storage.googleapis.com/5paisa-prod-storage/files/2022-04/MM-Trend-template-5-paisa.jpg)
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Last Updated: 14th December 2022 - 09:41 am
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.
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