Buy and Hold....

R Power (BUY, above Rs161, Target Rs170): On the daily chart, the stock has given an upside breakout in Thursday’s trading session. It suggests that the consolidation range is about to end and it may reverse into an uptrend. On Thursday, the stock advanced in a declining market, confirming the bullish set up. Moreover, the stock has given a close above its clutches of key moving averages on expanding volumes (i.e.100-DMA and 200-DMA) on Thursday. Yesterday’s up move in the stock was supported by spurt in volumes which was higher than its 3-day average volumes. The stock is likely to stage a strong reversal from the current levels in the medium term. We advise buying the stock above Rs161 with stop loss of Rs157 for a target of Rs170 (Time period: 7 days).