Jaiprakash Power shares up over 55% in a month; key technical levels to watch

Shares of Jaiprakash Power Ventures Ltd continued their strong upward move for the fifth consecutive session in Tuesday's trade. The stock jumped 15.39 per cent to scale a fresh 52-week high of Rs 14.32. At this price, the penny scrip has turned into a multibagger by rallying 176.98 per cent from its one-year low of Rs 5.17, a level seen on March 27, 2023. More than 55 per cent of the said rise came during the past one month.

The company, a part of Jaypee Group, is scheduled to announce its second-quarter (Q2 FY24) results on November 10 (Friday). As of September 2023, promoters held 24 per cent stake in JP Power.

At the time of writing this story, there were 1,55,29,494 sell orders today against buy orders of 62,03,381 shares. Around 12.46 crore shares changed hands today on BSE. The figure was more than the two-week average volume of 8.04 crore shares. Turnover on the counter came at Rs 168.81 crore, commanding a market capitalisation (m-cap) of Rs 9,704.50 crore.

A few technical analysts suggested that the counter is likely to witness profit booking in the near term. Support could be seen around Rs 13-11 levels. On the higher side, the stock may find resistance around Rs 15 level.

"JP Power has soared in the last couple of trading weeks on the back of robust volumes, indicating inherent strength. Also, the counter has made a long-awaited breakout from the zone of Rs 11-11.20 and is likely to continue its upward march. Support lies around the neckline of the breakout mentioned, followed by 10.20-10.40-odd levels. On the higher end, the immediate resistance is seen around the Rs 17-18 zone in the comparable period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Jaiprakash Power Ventures is bullish but also overbought on daily charts with next resistance at Rs 14.35. Investors should be booking profits at current levels as a daily close below support of Rs 12.20 could lead to a fall till 10 in the near term," said AR Ramachandran from Tips2trades.

"As the stock is trading way above all key exponential averages, one needs to be cautious as we may see some profit booking in the coming sessions. On the indicator front, the daily RSI (Relative Strength Index) is extremely overbought, which might cool in upcoming sessions. As we advance, support is seen near Rs 12.70 and resistance is seen near Rs 14.85," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"The stock may hit Rs 15 in the near term. Keep stop loss placed at Rs 13," DRS Finvest founder Ravi Singh said.

The counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The scrip's 14-day Relative Strength Index (RSI) came at 80.94. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 2.08 against a price-to-book (P/B) value of 0.79.

The scrip has a one-year beta of 1.82, indicating high volatility.

(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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