Shares of Tata Power Company Ltd continued their upward run for the seventh straight session in Thursday's trade. The stock rose 1.81 per cent to hit a new all-time high of Rs 396.70. Today's upward move in the share price came after Union Finance Minister Nirmala Sitharaman mentioned Pradhanmantri Suryodaya Yojana in her Budget 2024 speech. "Through rooftop solarisation, 1 crore households will be enabled to obtain 300 units of free electricity every month," she stated. This will result in savings of up to Rs 15,000-18,000 to households from free solar electricity and selling surplus to discoms, Sitharaman added.
At today's high price of Rs 396.70, the multibagger stock has ascended by 117.43 per cent from its 52-week low price of Rs 182.45, a level seen on March 28 last year.
Recently, Tata Power's subsidiary -- Tata Power Renewable Energy -- has successfully commissioned a pioneering 1040 kW Bifacial Solar System project with Chengmari Tea Estate, Asia's largest tea estate. The company said it is "the first-ever installation of on-ground bifacial modules in eastern India."
A market expert has selected Tata Power shares as his top pick from the renewable energy space following the announcement of PM Suryodaya Yojana. "Tata Power is a very good play on the solar roof-top story. It is purely a direct play in this sector," Vinit Bolinjkar, Head of Research at Ventura Securities, said during an interaction with Business Today TV.
"The government will soon launch a national campaign to install solar panels on the roofs of homes of eligible individuals under this scheme. It is implementing several welfare schemes. In this regard, the most recent scheme is the PM Suryoday Yojana. Under the scheme, solar panels will be installed on the roofs of people's homes. This will enable economically disadvantaged individuals to easily use the generated electricity," said Adhil Shetty, CEO, Bankbazaar.com.
On technical setup, support on the counter could be seen at Rs 375, followed by Rs 372 level.
"The stock has maintained the strong uptrend with recently finding some consolidation phase near Rs 390 zone and would need a decisive breach above Rs 394 level to carry on with the upward move. With the near-term support maintained near Rs 372 zone, one can hold on to their long position and expect a further rise. Only a decisive breach below the Rs 370 zone shall slightly weaken the bias," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.
"The stock has seen a very significant upmove. It is looking positive but one should not be aggressive in buying. Wait for some dip or profit-booking," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Tata Power stock price looks bullish but also overbought on daily charts with next resistance at Rs 405. Investors should book profits at current levels as a close below support of Rs 375 could lead to Rs 326 in the near term," said AR Ramachandran from Tips2trades.
(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)
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