Jaiprakash Power Ventures

We recommend a sell in the stock of Jaiprakash Power Ventures from a short-term perspective.

It is evident from the charts that the stock lost its bullish momentum in June 2009, encountering resistance at around Rs 100. Since then it has been on an intermediate-term downtrend, forming lower troughs and lower peaks.

It is also in a short-term downtrend since early January. It breached the 50 and 200-day moving averages in the recent times and is trading well below them. Furthermore, a 6-per-cent decline on February 4 reinforces the downtrend. The daily relative strength index has re-entered the bearish zone and the weekly RSI is slipping towards this zone in the neutral region. The daily moving average convergence and divergence indicator is declining in the negative territory. Our short-term forecast is bearish for the stock. We expect it to decline further until it hits our price target of Rs 59 in the approaching trading sessions. Traders with short-term perspective can consider selling the stock while maintaining stop-loss at Rs 69.

via BL