Tata Power's stock has risen 93% since its 52-week low in a year. Tata Power shares rose to a 52-week high of Rs 447.70 today, from a low of Rs 228.10 on August 16, 2023. The Tata Group will also release its Q1 results today. The Tata Power shares rose more than 2% to Rs 447.40 ahead of results.
Tata Power's market capitalization surpassed Rs1.41 lakh crore on the BSE. A total of 2.90 lakh shares of the company changed hands, resulting in a turnover of Rs 12.86 crore. Tata Power's shares fell to a 52-week low of Rs 228.10 on August 16, 2023 and to a record high of Rs 470.85 on August 2, 2024.
The power industry stock is up 35% in 2024 and 89% in a year.
In terms of technicals, Tata Power's relative strength index (RSI) is at 48, indicating that the stock is neither oversold nor overbought. Tata Power's shares are trading above the 20-day, 50-day, 100-day, and 200-day moving averages but below the 5-day moving averages.
Analysts are mainly positive about the Tata Group stock.
Hardik Matalia, Derivative Analyst at Choice Broking, stated, "It is recommended to consider buying on dips near the immediate support level of Rs 435, with a stop loss set at Rs 420." If the stock can maintain above its current high of 472, it may potentially rise to an upside target of 535 to 550. The Relative Strength Index (RSI) is at 48, suggesting that the stock is not overbought and hence has the opportunity for additional upward rise. Furthermore, the stock has rallied off its short-term (20-Day) Exponential Moving Average (EMA), indicating solid support at current levels.
Given the present technical indications and price activity, Tata Power looks to be well-positioned for an upward advance. The target price of Rs 535-Rs 550 corresponds to resistance levels and provides a favorable risk-reward ratio, making this a viable trade opportunity."
Shiju Koothupalakkal, Technical Research Analyst, PL Capital - Prabhudas Lilladher, stated, "The RSI is rising, indicating strength, and with much upside potential visible, we anticipate further rise for the next higher targets of Rs 495 and Rs 522 levels in the coming days." "The Rs 442 zone is an important support level."
Kushal Gandhi, Technical Analyst at StoxBox, is positive on Tata Power with a price objective of 520.
"Tata Power shares have increased by more than 100% since the October 2023 lows, with a following consolidation phase in the 20% area. This demonstrates consistent support from committed investors, avoiding drawdowns greater than 20% and implying continued accumulation to strengthen the current trend. The formation of a bullish double-bottom breakout following the consolidation period is a favorable development. The company has seen increased earnings per share (EPS), price strength, and buyer desire. We propose buying Tata Power shares at a target price of Rs 520 and a stop loss of Rs 441," Gandhi added.
Om Mehra, Technical Analyst at SAMCO Securities, stated, "The daily RSI is positively skewed at 62." The daily upper Bollinger Band is set around Rs 475 and serves as mild resistance; a break over this level might see the stock expand to Rs 500-520 in the coming weeks."
Jigar S Patel, manager at Anand Rathi, stated, "Support will be at Rs 450 and resistance at Rs 471." A decisive closing over Rs 471 may spark a further rally above Rs 485. For the immediate term, the projected trading range is Rs 440 to Rs 480.
