Shares of Torrent Power have been on a strong run, gaining 9.2 per cent over the last seven trading sessions on the BSE. The stock extended its momentum on Thursday, rising to Rs 1,314.45. Domestic brokerage Choice has initiated coverage on Torrent Power with a “Buy” rating, seeing a potential 14 per cent upside from current levels.
In its technical note dated October 15, Choice set a target price of Rs 1,500 for Torrent Power, with a suggested stop-loss at Rs 1,225. The brokerage recommended buying the stock at the Rs 1,315 mark as a medium- to long-term investment candidate.
The bullish case is underpinned by multiple technical indicators. The brokerage highlighted that Torrent Power is trading at Rs 1,315 and “has showcased a strong rebound from key support levels where demand had previously emerged on the weekly timeframe.” Choice also pointed to a significant “breakout of a long-term falling trend line pattern on the daily chart, along with a breakout from a descending triangle pattern visible on the weekly timeframe.”
Choice further observed a “double-bottom pattern supported by significant volume, suggesting strong accumulation and renewed bullish sentiment.” The note added that such technical setups often present high-probability opportunities for investors. Additionally, the stock is trading above its 20-day and 50-day Exponential Moving Averages (EMAs), which are likely to act as immediate support levels.
Momentum indicators are also signalling strength for bulls. The Relative Strength Index (RSI) stands at 62.30 and is trending higher on the daily chart, a sign of “strengthening bullish momentum and increasing buying interest,” Choice said.