Power Grid Corporation of India Ltd

NSE :POWERGRID   BSE :532898  Sector : Power Generation & Distribution

About Company: Power Grid Corporation of India is principally engaged in planning, implementation, operation and maintenance of Inter-State Transmission System (ISTS), Telecom and consultancy services.

Monthly Chart of Power Grid:

Looking at the chart of Power Grid on a monthly time frame it can be clearly observed that stock is trading in a long term channel formation. Currently stock is trading around channel pattern resistance levels breaking which we may see huge breakout in the stock and stock may enter uncharted territory. But currently Nifty looks weak and hence stock may find it difficult to cross the resistance levels of 190-195. Hence we recommend to Sell stock with a hedge for the targets of 170. i.e. one should Buy call option and Sell future. If stock closes above 195 then one and reverse short position and enter fresh long for the targets of 220+