Tata Power shares rise 23% from February low but analysts advise caution, here's why 

Shares of Tata Power are in consolidation mode, after gaining 23% from February low this year. The Tata Group's multibagger stock slipped to a 52-week low of Rs 326.25 on Februay 17, 2025. In the current session, Tata Power shares were trading on a flat note at Rs 402 on BSE. Market cap of the firm rose to Rs 1.27 lakh crore. 

The stock is neither oversold nor overbought on charts, signals its relative strength index (RSI), which stands at 51. In terms of price action, the stock is trading lower than the 5 day, 10 day, 20 day but higher than the 30 day, 50 day, 100 day, 150 day, 200 day moving averages.

The multibagger Tata Group stock rose 660% in five years. However, in a year, the stock slipped 9%.

The Tata Group stock touched a record high of Rs 494.85 on September 27, 2024. It has seen very high volatility in the last one year as its beta stands at 1.38.

Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio said, "Tata Power has been trading within a well-defined rising channel pattern since February 2025. Currently, the stock is hovering near its 20- and 50-day EMAs, indicating a crucial support zone. However, the ADX is trending lower, signaling weakening trend strength and a lack of momentum in the ongoing up move.  Traders holding existing long positions should remain cautious and maintain a strict stop-loss below Rs 395, which aligns with the 50 EMA. On the upside, fresh buying should be considered only on a breakout above Rs 410, which could potentially open the path for an upward move towards Rs 440. Until then, a wait-and-watch approach is advisable."

A R Ramachandran, SEBI registered Independent analyst says, "Tata Power stock price is slightly bullish on the Daily charts with strong support at Rs 396.6. A daily close above the resistance of Rs 410 could  lead to a target of Rs 430 in the near term."

Om Mehra, Technical Research Analyst, SAMCO Securities said, "Tata Power continues to trade within a well-structured uptrend, supported by a rising trendline that has consistently held since late April. After testing the Rs 385– Rs 390 support band last month, the stock rebounded and is now consolidating near the upper end of its recent range, just above Rs 400. The stock remains aligned with the middle Bollinger Band, while the rising lower band offers cushion on dips. The short-term consolidation over the past week appears healthy, with a series of narrow-bodied candles indicating indecision without deterioration. The support zone near Rs 395–Rs 390 remains crucial, aligning with the trendline, previous breakout level, and the lower edge of the recent rectangle formation."

"As long as the stock holds above Rs 388 which aligns with 78.6% of Fibonacci retrenchment, the broader trend remains positive. A decisive move above Rs 407 could open upside potential toward the Rs 418–Rs 425 zone. Until then, the current phase offers a short-term accumulation zone for those anticipating the continuation of the prevailing trend," added Mehra.