Unbelievable: Tata Power Stock Inches Closer to Record High – What’s Next Will Shock You!

Tata Power Company Ltd’s shares have recently approached their all-time high, a milestone reached in April of the preceding year. Back on April 7, 2022, the stock of the Tata Group touched a record peak at Rs 298. At present, the stock is trading 11% below this historical high from the previous year. In the latest trading session, Tata Power’s stock closed 2.01% higher at Rs 268.90, still 10.82% or Rs 29.1 lower than its all-time high on the BSE. After being in a consolidation phase since October 2021, the stock has witnessed a 27% surge this year. Since hitting a low point in March, Tata Power shares have made a significant recovery of 47.38%, equivalent to Rs 86.45, over a span of just over five months.

On March 28, 2023, the stock reached an intraday low of Rs 182.45.

On Friday, the stock achieved a fresh 52-week high at Rs 276.50, surpassing its previous closing price of Rs 263.60 on the BSE. The Tata Group’s stock opened higher at Rs 265 on the BSE on that day. A total of 60.27 lakh shares of the company changed hands, resulting in a turnover of Rs 163.30 crore on the BSE. The market capitalization of the company rose to Rs 85,922 crore.

The stock reached its recent 52-week high amid reports of a block deal worth Rs 155 crore on September 8. Approximately 0.2% of the equity changed hands in this block deal at a price of Rs 270 per share on the NSE.

In terms of technical indicators, the relative strength index (RSI) for the stock stands at 76.1, indicating that the stock is currently overbought according to technical charts. Tata Power has a one-year beta of 1.1, suggesting higher volatility during this period. Tata Power shares are currently trading above the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.

Here are insights from analysts regarding the stock’s outlook:

  1. Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, stated, “Tata Power has experienced an impressive run in the current financial year, surging by nearly 50% from its lows in the Rs 180 zone. From a technical perspective, the stock is in a pattern of higher highs and higher lows and is moving towards its all-time high of 293. On a broader time frame, the stock has broken through a significant resistance zone in the Rs 255-260 range. For now, Rs 255-260 is expected to provide short-term support, while the critical support level lies around Rs 235-230. The stock appears poised to reclaim its all-time high, but considering the substantial rally, some profit booking or cooling off may be healthy in a bullish market. Therefore, it’s essential to capitalize on any dips towards the mentioned support zone from a short to medium-term perspective.”
  2. Abhijeet from Tips2trades warned, “Tata Power’s stock price is overbought on the daily charts, with the next resistance at 288. Investors are advised to book profits at current levels, as a close below the support of 263 could lead to a decline to 228 in the near term.”
  3. Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher, noted, “The stock is on a strong bullish trend, with a near-term target around Rs 290-295 from the current zone. Near-term support is located near Rs 256, and only a decisive breach below Rs 250 levels would weaken the overall bias.”

In the June quarter, Tata Power reported a 22% increase in consolidated net profit, reaching Rs 972.5 crore compared to Rs 784.6 crore in the corresponding quarter of the previous fiscal year. Revenue also saw a 5% increase to Rs 15,213.3 crore compared to Rs 14,495.5 crore in the Q1 of the previous fiscal year. Additionally, EBITDA surged by 75% to Rs 2,943.6 crore compared to Rs 1,683.4 crore in the June quarter of the previous fiscal year.

Disclaimer: This article is for informational purposes only. Recommendations, opinions, and views expressed by the experts are their own and do not represent the views of Business Today. It is advisable to consult a financial advisor or a qualified stock market expert before making any investment decisions. Business Today will not be held responsible for losses resulting from trading or investing in the mentioned stocks.

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