Key breakout level in NHPC was at 34.50 and post that at 37. Immediately post listing high is shown in charts as 42, but I would not consider it as significant as it could be a fluke trade. So we have two important breakout levels at 34.50 and 37. Once stock price broke out past 37, it made a fresh all time high of 46.90 and then retraced to post swing lows of 36.75 and now at around 40. It has continued to make higher lows and higher highs, so I feel the trend still is intact, though momentum is missing.
Stocks often undergo time consolidation within a range, or above key levels before regaining momentum, and one has to be patient and give them time. And keep watching key levels to assess continuity or reversal of trend.
I am not too sure if NHPC is supposed to deliver multibagger returns, as fundamentally there is nothing exciting in business, except steady business and high dividend yield. Some revenue producing projects will keep coming on stream going ahead, but I don’t expect anything earth shattering from the company.
Overall I consider it as an anchor stock in portfolio, which also can be an option as a parking space if no other ideas are available. If something else more exciting comes up, one can switch. Stocks correcting 10-15% from purchase price is nothing new, especially in choppy markets which we have witnessed over past few weeks, month and overall whole year.
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