SJVN shares snap 2-day up move, fall 5% today; key levels to watch out for

SJVN Ltd shares fell sharply in Friday's trade, snapping their two-day upward move. The stock tanked 5.2 per cent to hit a day low of Rs 118.50. Despite the mentioned drop, the multibagger scrip has gained 108 per cent in past six months and 265 per cent in a year.

During the third-quarter (Q3 FY24), the state-run firm has recorded a drop in its profit and revenue. Geeta Kapur, CMD at SJVN, said, "Profit after tax (PAT) decreased by Rs 155.64 crore compared to third-quarter over the last year mainly due to lesser generation and slight decrease in capacity incentives."

In Q3 FY24, revenue from operations slipped 2.7 per cent over the same period last year because of lesser generation from the hydro projects, she added.

Technical analysts largely suggested mixed views on the counter. Immediate support could be seen at Rs 117 level. On the higher side, resistance may be found at Rs 130.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "SJVN has seen a decent correction from the highs of Rs 170 level. The stock has been very volatile as it witnessed both sides of moves within a slender time range. For now, the zone of Rs 110-100 is likely to cushion any blip, while resistance can be seen around the bearish gap of Rs 130-137-odd zone. A breakthrough on either side is expected to direct the immediate-term trend for the counter."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "We suggest buying this stock for an upside target of Rs 146 with a stop loss at Rs 116."

DRS Finvest founder Ravi Singh said, "Support on the counter will be at Rs 117. And, resistance will be at Rs 130."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 115 and resistance at Rs 130. A decisive close above Rs 130 level may trigger a further upside till Rs 140. Expected trading range will be between Rs 100 and Rs 150 for a month."

AR Ramachandran from Tips2trades said, "SJVN stock price looks bearish on daily charts with strong resistance at Rs 131. A daily close below support of Rs 104 could lead to Rs 93 in the near term."

SJVN is engaged in the business of generation of electricity and the tariff for power generation. The company manufactures and provides three key products and services: generation of electricity (hydro, wind and solar), consultancy and transmission. Its businesses include thermal power, hydro power, wind power, solar power, power transmission, consultancy and power trading.

(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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