Tata Power shares hit 52-week high for second session; can they breach record high?

Shares of Tata Power Company Ltd hit their 52-week high for the second consecutive session in early trade amid a record rally in the broader market today. Tata Power stock hit a yearly high of Rs 286, rising 3.72% in the morning session today. With today’s rally, the stock is Rs 12 short of the all-time high of Rs 298 hit on April 7, 2022. In the afternoon session, a total of 9.60 lakh shares of the firm changed hands amounting to a turnover of Rs 27.03 crore on BSE. Market cap of the firm rose to Rs 89,405 crore.

The Tata Group stock has gained 30% in the last six months. Tata Power stock has risen 24.25% in a year and climbed 32.14% this year. The stock has seen very less volatility in a year with a beta of 0.3.

In terms of technicals, the relative strength index (RSI) of the stock stands at 67.6, signaling the stock is neither overbought nor oversold on technical charts. Tata Power shares are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day, 200 day moving averages.

Also read: Tata Power shares in focus today as firm buys Bikaner Transmission project

Here’s a look at what analysts said on outlook of the stock.

Aditya Gaggar, Director of Progressive Shares said, "Consolidation of over one year comes to an end with a Cup and Handle Formation Breakout, which was confirmed with an uptick in the volume. Looking at the indicators, MACD has given a positive crossover which suggests an extension of the existing uptrend while a reading of 32.81 in ADX shows the presence of a strong uptrend. One can buy the stock at the CMP of Rs 282 with a decline up to Rs 270 for a target of Rs 350."

Avdhut Bagkar, Derivatives and Technical Analyst at Stoxbox said, “Tata Power must close with aggressive volumes over the Rs 270-mark to enter the next up move. A consecutive closing over Rs 270 shall see a move in the positive direction. The support for the current trend appears at Rs 255 level. Successive closes above Rs 270 could propel a move to the Rs 300-mark.”

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has given a breakout in the last session above the 276 zone improving the bias and has scope for further rise with indicators well placed. Currently has shown resistance with profit booking near 286 levels and with near-term support maintained at 275-276 levels one can hold on to the long position. Only a decisive breach below 266 levels would weaken the bias and can expect for further slide."

Abhijeet from Tip2trades said, "Tata Power is overbought & slightly bearish on the daily charts with next resistance at Rs 300. Investors should book profits at current levels as a daily close below the support of Rs 274 could lead to target of Rs 246 in the near term."

Deven Mehata, Equity Research Analyst at Choice Broking said, "The stock is presently trading at Rs 281.55 levels and is positioned close to its 52-week high of 286, indicating a robust market performance. The stock boasts a formidable support level at 263.5, aligned with the 20-Day Exponential Moving Average (EMA), enhancing its stability A notable trend in the stock's favour is the consistent formation of higher highs and higher lows over the past five weeks, coupled with trading above all crucial moving averages. This collective evidence underscores the stock's strength However, the momentum indicator, Relative Strength Index (RSI), is currently at 70 levels, approaching overbought conditions. Consequently, traders and investors are advised to consider buying the stock on potential dips, with a suggested stop loss set at 263.5 levels. For those who entered positions at lower levels, trailing stop loss orders can be employed, allowing for the protection of profits while permitting the stock to capitalize on potential further upside. Investors may also contemplate booking partial profits at these levels."

AK Prabhakar, Head of Capital, IDBI Capital termed Tata Power as one of his top fundamental stock picks. "The company expects its revenue and EBITDA to double by FY27. I think it will be more than double. If a company can double in 4 years, then its 20 per cent CAGR (Compounded annual growth rate). If it is doing the same in 3 years, then it is 25 per cent CAGR," Prabhakar told Business Today TV.

"The company expects its revenue and EBITDA to be doubled by FY27. I think it will be more than double. If a company can double in 4 years, then its 20 per cent CAGR (Compounded annual growth rate). If it is doing the same in 3 years, then it is 25 per cent CAGR," added Prabhakar.

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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