Jaiprakash Power shares zoom 43% in 4 sessions; here's what analysts say

Shares of Jaiprakash Power Ventures Ltd surged in Monday's trade, extending their gains for the fourth consecutive session. The stock soared 20 per cent to scale a fresh one-year high of Rs 13.75. Considering this price, the penny scrip has turned into a multibagger by rallying 165.96 per cent from its one-year low of Rs 5.17, a level seen on March 27, 2023. That said, the counter has gained 43.23 per cent in four trading sessions.

The company is scheduled to announce its second-quarter (Q2 FY24) results on November 10. As of September 2023, promoters held 24 per cent stake in JP Power.

On technical setup, support on the counter could be seen at Rs 13, followed by Rs 12.70 and Rs 12.20 levels. Resistance may be witnessed around Rs 15.

AR Ramachandran from Tips2trades said, "Jaiprakash Power Ventures is bullish but also overbought on daily charts with next resistance at Rs 14.35. Investors should be booking profits at current levels as a daily close below support of Rs 12.20 could lead to a fall till 10 in the near term."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "The counter has gained almost 65 per cent after hitting the low of Rs 8.3. Since it is trading way above all key exponential averages, one needs to be cautious as we may see some profit booking in the coming sessions. On the indicator front, the daily RSI (Relative Strength Index) is extremely overbought, i.e. 85 level, which might cool in upcoming sessions. As we advance, support is seen near Rs 12.70 and resistance is seen near Rs 14.85."

DRS Finvest founder Ravi Singh said, "The stock may hit Rs 15 in the near term. Keep stop loss placed at Rs 13."

On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day RSI came at 80.53. 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 1.92 against a price-to-book (P/B) value of 0.73.

The scrip has a one-year beta of 1.76, indicating low volatility.

There were 1,41,60,732 buy orders today at the time of writing this story. Around 15.24 crore shares changed hands today on BSE. The figure was way more than the two-week average volume of 6.12 crore shares. Turnover on the counter came at Rs 203.41 crore, commanding a market capitalisation (m-cap) of Rs 9,423.51 crore.

(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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