Is Power Grid Infrastructure Investment Trust Poised For A Breakout? SEBI RA Sees Early Reversal Signals
Synopsis
The analyst believes a clear breakout above ₹91 could open the path toward ₹100.50, but warns on operational tailwinds.
After a prolonged downtrend since mid-2022, Power Grid Infrastructure Investment Trust (PGInvIT) is showing clear signs of reversal, both from a technical and fundamental standpoint, according to SEBI-registered analyst Rajneesh Sharma.
He noted a new upward trendline, marked by a series of higher lows since March 2025, which is an early indication of a potential trend reversal.
Initially, the ₹75 level served as the demand base, but now ₹80.77 has flipped from resistance to support, Sharma said, adding that the current resistance zone lies at ₹91.
A clear breakout above ₹91 could open the path toward ₹100.50, a key support level from before the 2022 breakdown.
He added that the ₹80–₹88 range serves as a supply zone, where profit booking or selling pressure could resurface.
Sharma observed that bullish engulfing candles at the March and April lows, followed by a strong-bodied breakout candle, indicate firm buying interest and quash doubts of a false breakout.
The Relative Strength Index (RSI) at 60.67 has broken a long-term downtrend, with both price and RSI forming higher highs and higher lows, signaling a bullish divergence. A volume spike in the ₹80–₹87 range during earnings suggests that it could be due to institutional participation.
PGInvIT boasts strong fundamentals, with FY25 profits rising nearly 20% to ₹1,171.8 crore while its NAV per unit climbed to ₹94.12.
It also reported ₹1,081 Cr in net distributable cash flow for FY25, maintained a ₹12/unit payout with similar guidance for FY26, and offered an attractive forward yield of 13.8% at the current market price of ₹87.
However, Sharma cautioned that the stock is not without risks.
PGInvIT is currently trading near the ₹91 resistance level and requires a decisive breakout above this to confirm a sustained uptrend. However, projected revenue declines in FY28–30 for three SPVs could impact future payouts if no new acquisitions are made.
Additionally, upcoming O&M (operations and maintenance) contract renegotiations with Power Grid Corp. of India (PGCIL) in FY26 and potential short-term selling pressure in the ₹80–₹88 supply zone may impact near-term performance.
He suggested an entry point on a clean breakout above ₹91 or a retest of ₹80–₹82.
Retail sentiment on Stocktwits turned ‘extremely bullish’ from a day earlier, amid ‘extremely high’ message volumes.
At the time of writing, the stock was trading at ₹87 and has gained 2.6% year-to-date (YTD).
For updates and corrections, email newsroom[at]stocktwits[dot]com<
)