Power Grid - S/T target Rs 90/-

The Nifty / Sensex rallied well on the back of a weak Crude Oil. You would have observed that Crude Oil has broken the crucial support of Rs 5800/- on the MCX as indicated yesterday. I presume that if Crude now closes below 5745 on MCX we can expect further selling pressure in Crude Oil.

And that is in a way good news for the markets. Most of the traders are literally 'searching' for good news. And I only hope that the Inflation figures - whatever they might be, does not negate the 'Crude' advantage!

One stock which is showing signals of stabilising is POWER GRID. It has closed at Rs 82.50 today and I expect that a break above Rs 83.25 should give short term traders an opportunity of a move to Rs 90-91. Keep stop near 79.


(( Click on the Chart to see expanded form))

On the price reaching Rs 90-91, medium term traders infact can book partial and hold for a rise to Rs 98-99/- with an increased stop at Rs 85/-.

Short term traders with predominantly bullish attitude can take advantage of current movement in many B1 stocks. But remember to exit when it's time, else you may be left out 'holding the baby'!!!

Happy trading!

CA Rajiv D Khatlawala