Three short to medium term opportunities

Published February 14, 2019

The market showed a small loss Wednesday, and Nifty 50 (NIFTY) ended the day at 10794 points, which is a decline of 0.35 percent. The index has now closed down for the fourth day in a row.

Like we had suggested last time to stay with caution when Nifty had given a breakout from a rectangle formation, we hold our comment and suggest the same this time again. Why? Because there is still resistance at 11060 points which the index has not been able to defeat.

Persistent Systems Lim (PERSISTENT.NS) Close: 642.90

Persistent Systems Limited has broken through the ceiling of a falling trend channel in the medium term. This indicates a slower falling rate initially, or the start of a more horizontal development. The stock has given positive signal from double bottom formation by a break up through the resistance at 630. Further rise to 720 or more is signaled.

Positive volume balance and strong momentum supports the rally. The stock has risen sharply after bottoming out around 545 levels and under resistance at 664. One must maintain proper stop-loss.

Power Grid Corporation (POWERGRID.NS) Close: 176.55

Power Grid Corporation of India Limited is inside a falling trend channel in all time frames, short, medium and long term. Falling trends indicate that the company experiences negative development and declining buy interest among investors. The stock has broken a rectangle formation and may fall further down to 160 rupees or lower.

The stock has resistance between 180 and 190. The stock is overall assessed as technically negative for the medium term.