Torrent Power gives a downward channel breakout

The stock of Torrent Power Limited has given a breakout of downward sloping channel. This breakout was confirmed by the above 50-week average volume.

The major trend of the stock is bullish as it is trading above its weekly pivot and above its long and short-term moving averages, i.e. 20-week, 50-week, 100-week and 200-week EMAs and these moving averages are exactly in an ascending order, which suggests that the trend is strong. The 14-period weekly RSI is currently quoting at 65.58 and it is in the rising trajectory, which suggests bullish bias. The daily and weekly MACD stays bullish as it is trading above its zero line and signal line. Moreover, the ADX is very strong at 25.20. The -DI is below the +DI and ADX is above the -DI. This shows a technical strength in the stock. 

Going ahead, the stock has immediate support in the zone of Rs 297-296 as the 13-day EMA and a recent swing low is placed in that region, while the major support is placed in the zone of Rs 290-288 as it is the confluence of 34-day EMA and the upward sloping trendline support. On the higher side, any sustainable move above the level of Rs 320 is likely to open up gates for further rally towards the levels of Rs 335, followed by Rs 350.

On Friday, the stock of Torrent Power closed at Rs 313.05 per share, up by 2.54 per cent. The stock opened at Rs 304 per share and hit an intraday high of Rs 319.40 and a low of Rs 304 per share on the BSE.