JP Associates, JP Power shares surge up to 21% in 4 sessions; here's what analysts say

Shares of Jaiprakash Associates Ltd (JP Associates) and Jaiprakash Power Ventures Ltd (JP Power) continued their up move for the fourth straight session in Wednesday's trade. JP Associates rose 5 per cent to hit its one-year high of Rs 25.25. It has gained 15.99 per cent in four trading days.

On the earnings front, JP Associates has posted a consolidated net loss of Rs 476.12 crore in the third-quarter of this fiscal year. Its net loss stood at Rs 314.51 crore in the year-ago period and Rs 248.09 crore during previous quarter.

Immediate support on the counter could be seen at Rs 23.85, followed by Rs 22 and Rs 21 levels. Analysts largely suggested booking profits at current levels.

"Support will be at Rs 22 and resistance at Rs 27. A decisive close above Rs 27 level may trigger a further upside till Rs 30. Expected trading range will be between Rs 20 and Rs 32 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"JP Associates stock price looks bullish but also very overbought on daily charts with next resistance at Rs 27.4. Investors should book profits at current levels as a close below support of Rs 23.85 could lead to 19 in the near term," said AR Ramachandran from Tips2trades.

"The stock has strong resistance at Rs 28 level. Support will be at Rs 21. Investors should consider booking profit," said DRS Finvest founder Ravi Singh.

In case of JP Power, the stock also gained 5 per cent today to hit a 52-week high of Rs 21.94. In four sessions, the scrip has ascended by 20.75 per cent.

The company has reported a net profit of Rs 172.85 crore for the December quarter (Q3 FY24) compared with a profit of Rs 68.66 crore in the September (Q2 FY24) and a loss of Rs 217.97 crore in the same quarter last year (Q3 FY23).

"For JP Power, support will be at Rs 21 and resistance at Rs 26. A decisive close above Rs 26 level may trigger a further upside till Rs 28," said Patel from Anand Rathi.

"JP Power stock price looks bullish but also very overbought on daily charts with next resistance at Rs 23.3. Investors should book profits at current levels as a close below support of Rs 19 could lead to Rs 15.5 in the near term," said Tips2trades' Ramachandran.

"The stock will see resistance at Rs 25 level in the near term. Support is placed at Rs 19," said Singh from DRS Finvest.

Bourses BSE and NSE have put the securities of both JP Associates and JP Power under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

(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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