Tata Power shares hit 52-week high; what should investors do?

Shares of Tata Power Company Ltd hit their 52 week high in early trade amid a rally in the broader market today. Tata Power stock hit an intraday high of Rs 278.50, rising 3.93% in the morning session today. The Tata Group stock has gained 28% in the last six months. Tata Power stock has risen 22.45% in a year and climbed 30.04% this year. The stock has seen very less volatility in a year with a beta of 0.3.   

In terms of technicals, the relative strength index (RSI) of the stock stands at 61.6, signaling the stock is neither overbought nor oversold on technical charts. Tata Power shares are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day, 200 day moving averages.     

In the afternoon session, total 28.02 lakh shares of the firm changed hands amounting to a turnover of Rs 77.02 crore on BSE. Market cap of the firm rose to Rs 87,776 crore.        

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.” 

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. 

 Abhijeet from Tips2trades said, "Tata Power is bullish on the daily charts with next resistance at Rs 276. A daily close above this resistance could lead to target of Rs 306 in the near term. Support will be at Rs 265."

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 1: Adani Power, Delta Corp, Reliance Industries, Tata Power and more