Jaiprakash Power shares jump 19% today; here's what technical charts indicate

Shares of Jaiprakash Power Ventures Ltd surged 19 per cent to hit a high of Rs 22.55 in Monday's trade. The stock also logged high trading volume along with the price action as around 9.79 crore shares were last seen changing hands on BSE. The figure was way more than the two-week average volume of 83.52 lakh shares. Turnover on the counter came at Rs 210.02 crore, commanding a market capitalisation (m-cap) of Rs 15,351.75 crore.

On the technical front, support on the counter could be seen in the Rs 19.85-19.5 range. According to Sebi-registered independent analyst AR Ramachandran, "JP Power is bullish but also overbought on daily charts with next resistance at Rs 23.6. Investors should be booking profits as a daily close below the support of Rs 19.85 could lead to a downward target of Rs 16.8 in the near term."

Jigar S Patel, Senior Manager at Anand Rathi, noted that support on the counter will be at Rs 19.5 and resistance at Rs 21.5. "A decisive move above Rs 21.5 level may trigger a further upside towards Rs 23. The expected trading range will be between Rs 19 and Rs 23 for the short term," he added.

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 82.02. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Separately, Jaiprakash Associates Ltd shares climbed 5 per cent to hit their upper price band of Rs 3.22. The counter rose on reports that the Adani Group has emerged as the frontrunner to acquire the company.

JP Associates is currently undergoing insolvency proceedings and the Gautam Adani-led group has reportedly submitted a Rs 12,500 crore bid. The Adani Group has apparently proposed an upfront payment of over Rs 8,000 crore with no preconditions. However, it may face strong competition from the Dalmia Group, which could make a higher offer if a legal issue related to JP's Sports City project -- currently under review by the Supreme Court -- is resolved.