Jaiprakash Associates shares up 16% in two days; co calls Adani deal report 'factually incorrect'

Shares of Jaiprakash Associates Ltd on Thursday extended their sharp upward run for the second straight session. The stock surged 10.12 per cent to hit a 52-week high of Rs 14.47 over its previous close of Rs 13.14. It eventually settled 3.12 per cent higher at Rs 13.55. It has gained 15.51 per cent in just two trading days.

The strong up move in the share price came after it was reported that the Adani Group is in talks with Jaiprakash for acquiring a cement plant. BT, however, didn't verify the information. The company today said that the exchange has sought clarity on the matter.

JP Associates, later in the day, responded that there's no such development and called the report "factually incorrect".

"We are not aware of any reportable material information/event/announcement, other than those already in public domain, which, in our opinion, may have a bearing on the price/volume behaviour in the scrip of our company. As and when any reportable development takes place, the same shall be duly informed, as per requirements. The mentioned news report is factually incorrect," it stated.

On technical setup, support on the counter could be seen at Rs 12.1, an analyst said.

"JP Associates looks bullish on daily charts with next resistance at Rs 14.3. A daily close above this resistance could lead to target of Rs 16.5 in the near term. Support will be at Rs 12.1," said AR Ramachandran from Tips2trades.

"JP Associates share price is looking bullish and the momentum indicators are suggesting a strong buy inherent in the counter. The stock may touch Rs 15 level in the near term," said DRS Finvest founder Ravi Singh.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 66.94. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 3.32 against a price-to-book (P/B) value of 0.56.

The scrip has a one-year beta of 1.59, indicating high volatility.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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