Torrent Power Ltd

NSE :TORNTPOWER   BSE :532779  Sector : Power Generation & Distribution

About Company: Torrent Power is engaged in the business of generation, transmission and distribution of Electricity and of manufacture and sale of Cables.

News in Torrent Power: Friday as the power generator posted a nearly 15 per cent rise in its consolidated net profit at Rs 369.45 crore in the December quarter, mainly on the back of higher revenues. The company had reported a consolidated net profit of Rs 321.73 crore in the quarter ended December 31, 2020. The counter rose to a high of Rs 556.65 against Rs 539.85 at the previous close on the National Stock Exchange.

Daily Chart of Torrent Power:

Technical Outlook of Torrent Power:

Torrent Power Share gained 7.5% on Friday, 4th Feb 2022. Price appreciated by 40.5 per share and closed at 580.35. Company announced its Q3FY22 results which were better than estimates. Huge spike in volume has been seen in the stock.

On the Daily chart, stock is forming Ascending Triangle Pattern and breakout with volumes has been observed. In the last trading session the stock managed to close above the 50 days Exponential moving average which suggests momentum in the stock for a short term. Stock on the daily chart has seen a swift rally where the 100 days exponential average (Red Line on Chart Above) is acting as a good support for the stock. If we look at RSI Indicator (Relative Strength Index) we observed trendline breakout which conforms to the price pattern breakout out on chart.

Looking at the pattern breakout, RSI Indicator breakout and Volumes we keep a positive stance on the stock and recommend to buy the stock around current market price around 578- 581, expected targets on the upside should be maintained at 640- 680, Stop loss should be maintained below support levels of 530 on closing basis.