Tata Power shares climb 4% to hit record high today; is more steam left?

Tata Power Company Ltd shares continued their upmove for the third consecutive day in Tuesday's trade and scaled fresh all-time high levels. The stock rose 4.36 per cent to hit a day high of Rs 474.15. It was last seen trading 3.61 per cent higher at Rs 470.75. At this price, the scrip has gained 42.67 per cent on a year-to-date (YTD) basis.

The counter saw heavy trading volume on BSE as around 20.48 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 14.30 lakh shares. Turnover on the counter came at Rs 95.50 crore, commanding a market capitalisation (m-cap) of Rs 1,49,941.31 crore.

Some buying can be seen emerging in power stocks after a long consolidation and Tata Power is taking the advantage, said Kranthi Bathini, director of equity strategy at WealthMills Securities.

"Investors are getting attracted due to the company's focus on green and solar energy. Those holding can continue to hold on to the stock. Investors with a long-term view can accumulate it on dips," the market expert stated.

Technically, immediate resistance could be seen in the 490-510 range. And, support may be found in the 453-440 zone.

"The stock has breached above Rs 440 this week. It last touched these levels in April and just for a day in August. This breakout is a crucial one with heavy volume on weekly charts. Investors can hold this stock till Diwali, i.e. for a month. One can buy the stock with a stop loss of Rs 450. On the upside, it has potential to touch Rs 490," market expert Kush Ghodasara told Business Today TV.

"Tata Power has witnessed a consolidation breakout on daily charts which construes a robust setup for the counter. The stock maintained its positive stature for a long period and the recent development is anticipated to augur well for the buyers. On the level-specific front, Rs 490-500 is the intermediate resilience zone in the short term, breaching which it may surge higher. On the lower end, a series of support could be seen in the 450-440 range," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"The stock price is bullish on daily charts with strong support at Rs 453. A daily close above resistance of Rs 471 could lead to an upside target of Rs 510 in the near term," said Sebi-registered research analyst AR Ramachandran.

As of the June 2024 quarter, promoters held a 46.86 per cent stake in the company.