Stocks To Watch for July Month -- Torrent Pharma

TORRENT POWER 
About the Company 
Torrent Power is one of the leading power company of India, It is a renown Torrent Group Company. The company is into the business of power generation, transmission, distribution and manufacturing and supply of power cables. It is one of the largest private player in electricity generation in India.The company is the sole distributor of electricity to consumers in the cities of Agra, Ahmedabad, Bhiwandi, Gandhinagar, Surat.

• The Company is amongst the best run power utilities in the country with highly efficient generation assets. It has a portfolio of coal based, gas based and renewable power plants with an aggregate generation capacity of 3600 MW. 
• It also has under-construction wind power plants aggregating to 1111 MW. 
• The Company 1st acquired Ahmedabad Electricity Company from the Gujrat Government. It purchased the entire 28.89% stake from the government. 
• Torrent Power AEC, Torrent Power SEC, and Torrent Power Generation later merged to form Torrent Power Ltd with effect from 1st April 2005. 
• Torrent Power operates 249 km and 105 km 400kV double circuit transmission lines implemented by it, for evacuating power generated at SUGEN and DGEN plant to various off-take centres. 
• The T&D losses in Gujarat at 6.54% is amongst the lowest in the country. A testimony of Torrent Power’s operational efficiency is the drastic reduction in T&D losses in Bhiwandi from 48% in January 2007 to the present 19.33% 
• The Cables Unit manufactures Power & Control Cables and is one of the market leaders in HT Power Cable segment with a manufacturing capability of up to 132 kV XLPE Cables. 
• Recently the company got the approval from Gujarat Electricity Regulatory Commission for power procurement arrangement of 278 MW between the company's UNOSUGEN power plant and its Licensed Distribution Business for cities of Ahmedabad, Gandhinagar and Surat. 

Technical Analysis 

We recommend Torrent Power on the basis of Technical Analysis. The stock was trading in a range of only 40 points from the last one year (Since June 2018). Now recently it managed to break out its consolidation range and we expect it to continue its bull rally with heavy volumes in the upcoming months. The stock looks promising on weekly and monthly charts.

• The stock holds strong support at rising trend line on weekly chart drawn from the lows of August 2013, November 2016 and October 2018. 
• Recently the stock bounced back sharply from its 100 day EMA (Exponential Moving Average). And also managed to sustain above this moving average from the last 3 years. 
• The Elder ray Bull Power Indicator breaks its average of 30 and indicates powerful break out. 
• 277 was the key resistance which the stock breaks recently with heavy volume. 
• It also breaks short symmetric triangle pattern on weekly chart. The triangle formation starts in the 2nd week of October 2018. 
• The Next weekly and Monthly resistance exists at 307. Post which stock may head towards its all-time high level of 375. 
• 210 will act as strong support and should not be breached if the stock has to hit record highs in the upcoming months. 
• Buying is recommended in the ranges between 260 and 280 for the targets of 307 (For short-term traders) and 340 with stop loss below 210.

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