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Maharatna PSU Stock – Low PE, High ROE and Ready To Explode

10 May 20233 mins read by Angel One
Stock near 52-week high, forming stage-1 cup pattern with 25% depth. Trading above key moving averages, all trending up in desired sequence.
Maharatna PSU Stock – Low PE, High ROE and Ready To Explode
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The NSE benchmark Nifty 50 continued its winning streak for the third consecutive trading session on Wednesday as it gained 0.27% and closed above the 18,300 mark. Though it managed close above the 18,300-mark, volatility was the hallmark during the day!   

The Nifty 50 index recovered over 100 points from the day’s low of 18,211.95 and it ended the day near the day’s high. On the daily time frame, it has formed a candlestick pattern which resembles Dragonfly Doji as the open, high and close were almost identical and it had a long lower shadow. As the index has maintained its rhythm of green close, it’s likely the stock specific action is to continue and hence, we have picked one stock which has a great potential to witness action in tomorrow’s trading sessions (May 11, 2023).   

Power Grid Corporation of India Limited is a Maharatna public sector enterprise of Govt. of India and India’s largest electric power transmission company. The stock registered gains of nearly 1.6% on Wednesday and it closed at Rs 247.25 on NSE. The total traded volume for the day in the stock stood at 0.74 crore shares, which was highest in the last seven trading sessions.   

From a technical standpoint, the stock is at a cusp of registering a one-year long cup like pattern breakout. It’s a stage-1 cup pattern with a depth of almost 25%. As the stock is trading near to its 52-week high it is trading above all its key short- and long-term moving averages. Interestingly, all are trending up and are in the desired sequence. It is also meeting the Guppy Multiple Moving Average (GMMA) set up by Daryl Guppy. This structure indicates that the stock is in clear uptrend.   

The daily 14 periods RSI marked a fresh high and is in super bullish territory thus supporting the positive bias and the daily MACD is pointing northward while sustaining above its nine periods average which is positive for the stock. The trend strength indicator, Average Directional Index (ADX) is at 38.5, which shows the strength. And this ADX is in up trending mode. The +DI is much above the -DI. This structure is indicating the bullish strength in the stock.   

Hence, this Maharatna public sector stock should be on your watchlist for tomorrow! 


Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations.

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