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REC Ltd BUY TECHNICAL
CMP: Rs 177 (As on 02nd Nov 2017)
Buy: Rs 177-174 PICK
Target Price: Rs 191-205
Stop-Loss: Rs 167 Rural Electrification Corporation Ltd (REC) is a
REC listed Government of India public sector enterprise
which provides finance to power sector. Its
4 ARIHANT CAPITAL ยก novembER 2017 main objective is to finance and promote rural
electrification projects all over the country. It
provides financial assistance to state electricity
boards, state government departments and rural
electric cooperatives for rural electrification
projects as are sponsored by them. It provides
loan assistance to state electricity boards (SEBs)/
State Power Utilities for investments in rural
electrification schemes through its corporate office
located at New Delhi and over 20 field units, which
are located in most of the states. It has sanctioned
approximately 580 transmission and distribution
schemes, which include primary power evacuation
schemes associated with generating plants,
system improvement schemes, including feeder
segregation schemes, bulk loan schemes, intensive
electrification schemes and pumpset energization
schemes.
Technical Outlook:
On the daily chart, the stock has given a falling
channel breakout and has started trading above
the 200-day SMA which suggests strength going
forward. Further the momentum oscillator viz. RSI
is gaining momentum.
Hence we recommend buying in stock at Rs 177
or on a decline up to Rs 174 levels with a stop
loss of Rs 167 for a target of Rs 191-205 levels.
