Tata Power shares climb 3% to hit fresh all-time high level; is more steam left?

Tata Power Company Ltd shares extended their winning run for the 10th straight session in Friday's trade. The stock rose 2.84 per cent to touch its lifetime high of Rs 444.10. It was last seen trading 2.15 per cent higher at Rs 441.15 in late morning deals today. At this price, the multibagger stock has soared 123.88 per cent in the past one year.

Technical analysts largely remained bullish on the counter. Although, one of them suggested that investors should keep booking profits. Support could be seen at Rs 430, followed by Rs 420 and 413 levels. And, immediate resistance may be found at the Rs 445-450 zone.

"Tata Power shares have given a breakout. The momentum indicator has also entered into the bullish zone. One can expect upside targets of Rs 490-500 in the near term. Keep a strict stop loss placed at Rs 420," Kiran Jani, Head of Technical Research at Jainam Broking, told Business Today TV.

"Tata Power is bullish but also very overbought on daily charts with next resistance at Rs 449. Investors should keep booking profits as a daily close below support of Rs 413 could lead it to a lower level of Rs 357 in the near term," said AR Ramachandran from Tips2trades.

"Support will be at Rs 430 and resistance at Rs 445. A decisive close above Rs 445 level may trigger a further upside till Rs 470," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

The expected trading range will be between Rs 425 and Rs 470 for a month, Patel added.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 64.24. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 96.83. Earnings per share (EPS) stood at 1.33.

As of December 2023, promoters held a 46.86 per cent stake in the Tata Group company.