POWERGRID Long 28.3.17

28 mar 2017

POWERGRID 28.3.2017

Trade

Date of Trade (Time if applicable): 25 March 2017

Entry Date: Buy Stop

Trade Entry:
Market: BSE
Stock: POWERGRID
Long/ Short: Long
Current Price: 196.75
Entry Price: 198.23
Time Frame: Daily

About the company
Power Grid Corporation of India Limited is a transmission company engaged in the power transmission business with responsibility for planning, implementation, operation and maintenance of Inter-State Transmission System and operation of National and Regional Load Dispatch Centers. The Company's segments include Transmission, Telecom and Consultancy. The Transmission segment includes extra high voltage/high voltage (EHV/HV) networks and grid management. It also owns EHV alternating current (AC) and HV direct current (HVDC) sub-stations. The Consultancy segment includes planning, design, engineering, load dispatch, procurement management, operation and maintenance, financing and project management. The Telecom segment includes transmission infrastructure, enterprise services and topologies. It owns and operates over 129,350 circuit kilometers of EHV transmission lines. It has approximately 210 sub-stations. Its Smart Grid enables real time monitoring and control of power system.



Type of Trade: Swing Trade

Reason For Trade:
Stock is in uptrend
In past price has moved around 50SMA and price is currently above 50SMA
Price has hit the trendline
RSI above 50 level
MACAD cross over is happening below the zero line. i.e the crossover is not a strong crossover but has a potential
Fundamentally strong stock
Giving good dividends

Stop: 190.58

Target:
Target 1:207.70
Target 2: 218.36

Pluses:
Fundamentally strong
Company has been maintaining a healthy dividend payout of 23.25%
Net cash flow in Mar 2016 was good and in positive
Quarterly results are good

Minuses:
Company might be capitalizing the interest cost
Technically is not the perfect setup