Tata Power shares hit record high, overbought on charts; what’s next?

Shares of Tata Power Co Ltd hit a record high amid a record rally in the broader market today. Tata Power stock hit an all-time high of Rs 298.60, rising 6% in the afternoon session on BSE. The Tata Group stock surpassed the previous record high of Rs 298 hit on April 7, 2022.  Amid the rally, the market cap of Tata Power zoomed to Rs 94,885 crore. In the afternoon session, a total of 39.06 lakh shares of the firm changed hands amounting to a high turnover of Rs 113.39 crore on BSE.

Tata Power stock has gained 37% in the last six months. Tata Power stock has risen 29.78% in a year and climbed 40.17% this year. The stock has clocked very less volatility in a year with a beta of 0.4.

Also read: Tata Power shares hit 52-week high for second session; can they breach record high?

In terms of technicals, the relative strength index (RSI) of the stock stands at 70.8, 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.

Avdhut Bagkar, Derivatives and Technical Analyst at Stoxbox said, “Tata Power must close with aggressive volumes over the Rs 270-mark to enter the next up move. A consecutive closing over Rs 270 shall see a move in the positive direction. The support for the current trend appears at Rs 255 level. Successive closes above Rs 270 could propel a move to the Rs 300-mark.”

Abhijeet from Tip2trades said, "Tata Power is overbought & slightly bearish on the daily charts with next resistance at Rs 300. Investors should book profits at current levels as a daily close below the support of Rs 274 could lead to target of Rs 246 in the near term."

Access the real-time and historical data on market capitalisation of Adani group companies at BSE500 Rankings HERE

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: Bajaj Auto, Hero MotoCorp, Eicher, TVS Motor: CLSA downgrades 2-wheeler stocks, revises share price targets

Also read: Hot stocks on December 6: Adani Power, Suzlon Energy, Tata Power, Balaji Amines and more