indiamarketoutlook
Long

Rpower: At 2 yr support level...if held could be very bullish !!

NSE:RPOWER   RELIANCE POWER
Rpower             CMP 36.95

The stock is near its 2 year support or should I say near all time low levels...

In the current set up

- Momentum might come on sustaining above 38.5 - 40 levels

- for target of 46 / 58 initially and above that it could scale up to 85 odd levels in the longer term

- pattern gets invalidated if stock closes below 33 odd levels levels

- however would be skeptical if it closes below 34.60


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Some Key Fundamental parameters

Book Value: Rs             76.17 per share (Shares available at 50% discount to its Book Value)

EPS             ( Earnings Per Share): 3.55

PE RATIO : 10.35 (Comparing PE Ratio with Tata Power 24.22 and Nifty             Price to Earning ratio 25.96, Rpower             looks grossly under valued )


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Let me go by Disclaimer

- Key Fundamental parameters are not my own calculations but as per publicly available information on leading financial websites...

- Also understand there is lot more to Fundamental Analysis than Key parameters mentioned here

- the fact that Nifty             is at all time highs and Rpower             near all time lows also reflect that the fundamentals of the Company / Sector as a whole has been on a weaker side so far..Reasons could be debt problems / Government policies for Power sector etc to name a few...

_____________________________________________

That being said our verdict is stock looks good from longer term perspective with better risk::reward ratio

Take care & happy investing...!!!
Trade active: Rpower has broken past the resistance zone of 38.50-40 odd levels...

Next target 46 / 58

The stock needs to sustain above 38.50 going forward...

Take care & happy investing...!!!
Trade active: Rpower
CMP 50.50

Charts were suggesting that once the stock crosses 38.50-40 zone we might see momentum returning in the stock...
Well that's exactly what we have seen

On 22 Dec Rpower went past the resistance zone

One week down the lane and today the stock has made a high of 51.55 so far

Consider booking partial profits...

Trail stop loss to 44 for balance

Happy trading and enjoy your weekend...!!!
Trade active: Rpower continuing its power run...

Stock is up 25% so far today currently at 63+ levels...

Holding 58-62 zone opens up further upside

Continue to hold and trail stop loss to 52

Happy trading...!!!

Happy Happy New Year...!!!
Sir i am holding 3000@63 what is your suggestion?
Reply
@paresh1c,

Keep patience and
Do not worry...

The rally from 35 to 65 is just the 1st leg of rally....

On charys 58-62 is an important level and the stock is respecting those levels.... If feasible look to add on dips...

A weekly close above 62 will clear it's way and increase its probability for a move towards 85/ 108 levels in 2nd leg of rally in medium term....

&

Above 120, we can see the stock potentially heading towards 166 / 180 levels in the longer run...


Give the stock the time it deserves and it should reward you well....

Take care and safe trading...!!!
Reply
paresh1c indiamarketoutlook
@indiamarketoutlook, thank you sir for your view. Lets hope good, your analysis is very good
Reply
@paresh1c, thanks for your appreciation it means a lot to us :-)
Reply
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