In Tuesday’s trading, shares of Tata Power Company Ltd. rose for the third day in a row and reached new all-time highs. The stock increased 4.36% to close at Rs 474.15, the day’s high. At Rs 470.75, it was last seen trading 3.61 per cent higher. At the current price, the share has increased 42.67% year-to-date (YTD).
At the time this piece was written, 20.48 lakh shares had exchanged hands on the BSE, indicating a high trading volume for the counter. The amount exceeded the 14.30 lakh share two-week average volume. With a market capitalisation (m-cap) of Rs 1,49,941.31 crore, the counter had a turnover of Rs 95.50 crore.
After a protracted consolidation, some buying is beginning to show up in power stocks. Tata Power is capitalising on it, according to Kranthi Bathini, director of equities strategy at WealthMills Securities. Investors are drawn in by the company’s emphasis on solar and green energy. The stockholders are free to keep hanging onto it. Long-term investors can buy it on dips, according to the market analyst. Technically, instant resistance might be noticed in the 490-510 range. Support is also available in the 453–440 range.
This week, the stock crossed above Rs 440. It only briefly reached this level in August and April. On weekly charts, this breakout—which has significant volume—is quite important. Investors have a month or until Diwali, to hold this stock. One can purchase the stock with a stop loss of Rs 450. It might rise as high as Rs 490 on the upside, according to market analyst Kush Ghodasara, who spoke to Business Today TV.
“On the daily charts, Tata Power has seen a consolidation breakthrough that suggests a strong counter setup. For an extended duration, the stock retained its favourable status, and the latest advancement is expected to bode well for the purchasers. In terms of level-specificity, the intermediate resilience zone in the medium term is Rs 490–500, beyond which it may rise higher. A sequence of support was observed around the 450–440 area on the bottom end, according to Osho Krishan, Senior Research Analyst, Technical & Derivatives at Angel One.
“On daily charts, the stock price is bullish, with strong support at Rs 453.” A daily closing above resistance of Rs 471 might lead to an upward objective of Rs 510 in the short term,” said Sebi-registered research analyst AR Ramachandran. In the corporation, promoters owned 46.86 per cent as of the June 2024 quarter.
