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How to do SIP (Systematic Investment) in Stocks?

“History is written by the winners” -Napoleon Bonaparte I won’t be writing about the SIP which is already covered in the public doma...

Sunday, August 3, 2008

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Areva T&D for long term play

Areva T&D is one stock that is going to benefit very much form the nuclear deal. I have found several references to support this. And I have a feeling that it is not good to waste any more time. I plan to enter capital into this stock before this stock proves that it indeed is good for long term.

It is a global player in transmission and distribution of power. With nuclear deal going ahead, it might benefit from it. Areva T&D India is its subsidiary.

Look at recent news item:

Areva plans big play in India's nuclear power sector

After IAEA unanimously cleared India-specific safeguards agreement, World's largest nuclear power firm, Areva NP of France said it was gearing up to enter India's nuclear power sector in a big way and plans to float a separate subsidiary for it.

Areva has two separate companies-one for nuclear power generation, Areva NP and another for transmission and distribution, Areva T&D.

Source: http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/Areva_plans_big_play_in_Indias_nuclear_power_sector/articleshow/3320652.cms

Both subsidiaries will benefit if the parent company starts engaging in nuclear power.

Its home page:


In the past, Business Standard has reported this stock on June 21 2008 when it made up moves with good volumes. Volume is an important parameter to be considered when judging any move in a stock. Without volume any move will be temporary consolidation.

I am producing the BS report. It comes in stock watch section.

Areva up on nuke deal survival hopes


BS Repoter / Mumbai June 21, 2008, 0:35 IST

Areva T&D moved up by 2.24 per cent to Rs 1,367.60 after media reports said that the government might try to save the beleaguered Indo-US nuclear deal. Areva is one of the major global players for making nuclear power reactors.

The scrip opened at Rs 1,350 and went on to achieve Rs 1,416. It hit a low of Rs 1,341 during intra-day trades. A total of 55,404 Areva shares changed hands at BSE. The scrip has gained 2.89 per cent in the last week and has fallen 13.26 per cent in the last one month.

A chart from nseindia.com. I couldn’t get older data as it changed its name from Areva to ArevaT&D on July 14. Even with older name I couldn’t get data older than June 30.

A look at icharts.in data shows a better picture. The stock is clearly in uptrend.

As the volumes show, it moved up till July 23 with huge volumes till 1800 and found resistance there. After that it is consolidating with lesser volumes. Next move (legit) can be expected anytime soon as the price is nearing the red line (20 day moving average). A price near 20DMA = 1540, can be good to buy. It has bounced once on 25 July from 1600 and on 1 Aug also it bounced from 1600. It seems 1600 is strong support and if it is not broken we can safely enter the stock with stop loss at 1575 and wait till it makes its next upmove. That must be associated with good volumes. It need not be as high as previous times. Once a stock establishes or reverses a trend with sudden surge in volumes, it doesn’t need such volumes to continue the trend. Many stocks have shown such behavior in the past.

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