Tata Power shares hit record high, overbought on charts; here are fresh price targets

Shares of Tata Power Company hit a record high in early deals. Tata Power shares surged 1.87% to a high of Rs 457.50 against the previous close of Rs 449.10 on BSE. Market cap of Tata Power climbed to Rs 1.45 lakh crore on BSE. A total of 3.17 lakh shares of the firm changed hands amounting to a turnover of Rs 14.38 crore. Tata Power stock declined to a 52-week low of Rs 199.35 on May 5, 2023.

The power sector stock has gained 39% in 2024 and risen 127% in a year.

In terms of technicals, the relative strength index (RSI) of Tata Power stock stands at 74.2, signaling the stock is trading in the oversold zone. Tata Power shares stand higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The Tata Group stock has a one-year beta of 0.7, indicating low volatility during the period.

Avdhut Bagkar, Derivatives & Technical Analyst, StoxBox said, "The “Higher High, Higher Low” formation continues to bolster the positive bias, as per the daily chart. The underlying bias remains highly resilient, with the price action witnessing accumulation around key supports of Rs 425 and Rs 400 levels, its 50- daily moving average (DMA) and 21-DMA. The trend is headed towards Rs 490 levels, and may even rise higher if Rs 440 level is defended in the short-run. A weekly chart reveals a breakout of a minor triangular formation, despite trading in the overbought category of the Relative Strength Index (RSI)."

Abhijeet from Tips2trades said, "Tata Power is bullish but also overbought on the daily charts with next resistance at Rs 474. Investors should keep booking profits as a daily close below the support of Rs 438 could lead to a target of Rs 384 in the near term."

The firm is yet to announce its earnings for the quarter ended March 2024. In the December 2023 quarter, Tata Power reported a 2.28 per cent rise in its third-quarter (Q3 FY24) consolidated net profit on a year-on-year (YoY) basis. Net profit climbed to Rs 1,076.12 crore in Q3 against Rs 1,052.14 crore in the year-ago period.

Revenue from operations climbed 3.69 per cent in Q3 FY24 at Rs 14,651 crore compared to Rs 14,129.12 crore in the corresponding quarter last fiscal. Tata Power expenses rose to Rs 14,254.11 crore in October-December 2023 quarter from Rs 13,745.89 crore in Q3 FY23.