Jaiprakash Power shares climb 26% in a month; key levels to watch ahead

Shares of Jaiprakash Power Ventures Ltd declined on Tuesday, halting a two-day winning streak. The stock slipped 1.10 per cent to settle at Rs 22.41. Despite the dip, it has surged 26.32 per cent over the past month. Trading activity was notably high on the BSE, with approximately 8.74 crore shares changing hands -- significantly above the two-week average volume of 1.89 crore shares. The counter registered a turnover of Rs 200.68 crore, with the company's market capitalisation (m-cap) standing at Rs 15,358.60 crore.

In response to an exchange query regarding the volume, JP Power clarified: "Currently, there is no unpublished price-sensitive information or any pending announcement or development that could, in our view, impact the price or volume of the stock. Should any such event or information emerge, we will disclose it promptly in line with regulatory requirements. We believe the stock’s price movement is purely driven by market forces."

A few analysts see a bullish setup in JP Power but advise caution at current levels near key resistance. A breakout above Rs 24 could fuel further gains, while support lies at Rs 20–18.50.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted that JP Power has been in an uptrend since the start of the current financial year. Recently, it witnessed a sharp rise in price and volume, testing a key resistance zone of Rs 23–24. A strong and sustained breakout above this level could trigger the next rally. He advised trailing profits with stop losses following the steep rise, while identifying Rs 20–19 as a key support area.

Kunal Kamble, Senior Technical Analyst at Bonanza, pointed out signs of a bullish trend but cautioned against fresh buying at current levels due to resistance. He recommended a 'buy-on-dip' approach as long as the stock remains above its support of Rs 18.50, warning that a drop below the said level would negate the bullish outlook.

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 81.68. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The scrip has a price-to-earnings (P/E) ratio of 18.99 against a price-to-book (P/B) value of 1.28. Earnings per share (EPS) stood at 1.18 with a return on equity (RoE) of 6.76. According to Trendlyne data, JP Power has a one-year beta of 1.2, indicating high volatility.