JP Power shares jump 12% on Jaiprakash Associates' resolution plan approval; what analysts say

Shares of Jaiprakash Power Ventures Ltd (JP Power) surged in Wednesday's trade after the company said the National Company Law Tribunal (NCLT), Allahabad Bench, has orally approved the resolution plan for its promoter firm Jaiprakash Associates Ltd (JAL), submitted by Adani Group's flagship entity.

"We hereby inform you that the Hon'ble National Company Law Tribunal, Allahabad Bench, has orally pronounced an order approving the resolution plan submitted by M/s Adani Enterprises Ltd (the successful Resolution Applicant) with respect to the insolvency process of Jaiprakash Associates Ltd (the Promoter Company)," JP Power stated in an exchange filing.

The stock climbed 11.87 per cent to hit a day high of Rs 15.64. It also saw heavy trading activity, with around 1.28 crore shares changing hands -- significantly higher than the two-week average volume of 38.19 lakh shares. Turnover stood at Rs 19.24 crore, with the company's market capitalisation (m-cap) at Rs 10,444.67 crore.

Kranthi Bathini, Equity Strategist at WealthMills Securities, said the uptick in JP Power shares was largely driven by positive sentiment following the approval of JAL's resolution plan.

From a technical perspective, a few analysts largely maintained a positive near-term outlook on the stock, although one flagged a range-bound to bearish trend.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted, "JP Power has gained sharply, backed by robust volumes after a long period of correction. The counter seems to have staged a turnaround with support visible around the Rs 13.50-13 zone. On the flip side, Rs 17-18 is likely to be seen as an intermediate hurdle in the near period."

According to AR Ramachandran, a Sebi-registered research analyst at Tips2trades, "JP Power's stock is bullish on daily charts with strong support at Rs 13.98. A daily close above the resistance of Rs 15.07 could lead to an upside target of Rs 17.8 in the near term."

However, Kunal Kamble, Senior Technical Research Analyst at Bonanza, flagged caution. "JP Power is currently trading in a range-bound to bearish structure after facing rejection from the Rs 23–24 resistance zone, which has acted as a strong supply area multiple times. The price is hovering near key support around Rs 14–13; a breakdown below this level may trigger further downside. Overall, the trend remains weak. Only a breakout above Rs 16–17 can signal short-term bullish reversal, while failure may lead to continued consolidation or decline."