Tata Power shares hit record high for second straight session; how strong is the uptrend?
Tata Power share price today: Tata Power stock hit an all-time high of Rs 322.30, rising 9.58% in the afternoon session on BSE.
- Dec 7, 2023,
- Updated Dec 7, 2023 1:08 PM IST
Shares of Tata Power Co Ltd hit a record high for the second straight session amid a mild correction in the broader market today. The Tata Group stock has been gaining for the last five sessions. Tata Power stock hit an all-time high of Rs 322.30, rising 9.58% in the afternoon session on BSE. In the previous session, the Tata Group stock surpassed the previous record high of Rs 298 hit on April 7, 2022. It hit an intraday and an all-time high of Rs 298.60 on December 6 on BSE.
With the current rally, the market cap of Tata Power zoomed to Rs 1.01 lakh crore. In the afternoon session, a total of 42.24 lakh shares of the firm changed hands amounting to a high turnover of Rs 131.73 crore on BSE.
Tata Power stock has gained 45.47% in the last six months. Tata Power stock has risen 40.64% in a year and climbed 50% this year. The stock has clocked very less volatility in a year with a beta of 0.4.
In terms of technicals, the relative strength index (RSI) of the stock stands at 77.1, signaling the stock is trading in the overbought zone. Tata Power shares are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day, 200 day moving averages.
Here’s a look at what analysts said on outlook of the stock.
Mandar Bhojane, Equity Research Analyst at Choice Broking said, “Tata Power is presently trading at an all-time high level of Rs 322, having formed a rounding bottom pattern breakout with significant volume. This pattern suggests a robust bullish momentum in the stock.
Moreover, the stock is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above crucial EMAs strengthens the bullish outlook, indicating the potential for sustained upward price movement.
The Relative Strength Index (RSI) is currently at 76.7 and trending upwards, signaling an increase in buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has exhibited a positive crossover from the oversold region, further contributing to the bullish sentiment. The convergence of these technical indicators suggests that the stock may have the potential to reach a target price of Rs 420 in the near term. To manage risk effectively, it is recommended to implement a stop-loss (SL) at Rs 260.”
Also read: Tata Power shares hit record high, overbought on charts; what’s next?
Aditya Gaggar, Director of Progressive Shares said," Consolidation of over 1 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 a CMP of Rs 282 with a decline up to Rs 270 for a target of Rs 350"
Abhijeet from Tips2trades said, "Tata Power is overbought and slightly bullish on the daily charts with next resistance at Rs 336. Investors should book profits at current levels as a daily close below the support of Rs 300 could lead to a target of Rs 246 in the near term."
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.
Also read: Hot stocks on December 7: Adani Total Gas, Paytm, ITI, Tata Power and more
Shares of Tata Power Co Ltd hit a record high for the second straight session amid a mild correction in the broader market today. The Tata Group stock has been gaining for the last five sessions. Tata Power stock hit an all-time high of Rs 322.30, rising 9.58% in the afternoon session on BSE. In the previous session, the Tata Group stock surpassed the previous record high of Rs 298 hit on April 7, 2022. It hit an intraday and an all-time high of Rs 298.60 on December 6 on BSE.
With the current rally, the market cap of Tata Power zoomed to Rs 1.01 lakh crore. In the afternoon session, a total of 42.24 lakh shares of the firm changed hands amounting to a high turnover of Rs 131.73 crore on BSE.
Tata Power stock has gained 45.47% in the last six months. Tata Power stock has risen 40.64% in a year and climbed 50% this year. The stock has clocked very less volatility in a year with a beta of 0.4.
In terms of technicals, the relative strength index (RSI) of the stock stands at 77.1, signaling the stock is trading in the overbought zone. Tata Power shares are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day, 200 day moving averages.
Here’s a look at what analysts said on outlook of the stock.
Mandar Bhojane, Equity Research Analyst at Choice Broking said, “Tata Power is presently trading at an all-time high level of Rs 322, having formed a rounding bottom pattern breakout with significant volume. This pattern suggests a robust bullish momentum in the stock.
Moreover, the stock is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above crucial EMAs strengthens the bullish outlook, indicating the potential for sustained upward price movement.
The Relative Strength Index (RSI) is currently at 76.7 and trending upwards, signaling an increase in buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has exhibited a positive crossover from the oversold region, further contributing to the bullish sentiment. The convergence of these technical indicators suggests that the stock may have the potential to reach a target price of Rs 420 in the near term. To manage risk effectively, it is recommended to implement a stop-loss (SL) at Rs 260.”
Also read: Tata Power shares hit record high, overbought on charts; what’s next?
Aditya Gaggar, Director of Progressive Shares said," Consolidation of over 1 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 a CMP of Rs 282 with a decline up to Rs 270 for a target of Rs 350"
Abhijeet from Tips2trades said, "Tata Power is overbought and slightly bullish on the daily charts with next resistance at Rs 336. Investors should book profits at current levels as a daily close below the support of Rs 300 could lead to a target of Rs 246 in the near term."
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.
Also read: Hot stocks on December 7: Adani Total Gas, Paytm, ITI, Tata Power and more