Jaiprakash Power Ventures

We recommend a buy in the stock of Jaiprakash Power Ventures from a short-term trading perspective. It is seen from the charts that the stock was on an intermediate-term downtrend from its June 2009 peak of Rs 103 until it found support around Rs 62 in late May 2010. This level is a long-term support for the stock. Since then, the stock has been on a short-term uptrend. While trending up, it breached 21 and 50-day moving averages successively. Moreover, the stock's 4 per cent jump on July 13 has emphatically penetrated its 200-day moving average and the down trend-line. There has been an increase in volume over the past two trading sessions. The 14-day price rate of change indicator has rebounded into the positive territory and weekly indicator is featuring in this territory implying buying interest. A buy signal in the daily moving average convergence divergence indicator and daily RSI hovering in the bullish zone are other positive factors for the stock. Our short-term outlook on the stock is bullish. We expect the stock to move ahead to hit our price target of Rs 76 or Rs 78 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 72.

via BL