Tata Power shares: Zero returns in a year, down 23% from record high; should you buy on dips?

Shares of Tata Power have left investors reeling under losses this year. The Tata Group stock is down 4% on a year-to-date basis and yearly basis, despite hitting a 52 week high of Rs 416.70 on June 11, 2025. The stock has lost 23% from its record high of Rs 494.85 hit on September 27, 2024. However, the stock zoomed 398% in five years and gained 454% in ten years. 

The stock trades below all-short term and long term-moving averages signalling the trend is bearish on the Tata Group stock. 
 
In the current session, Tata Power shares were trading on a flat note at Rs 377 on BSE. Later, the stock closed 1.39% higher at Rs 374.35. Market cap of the firm rose to Rs 1.21 lakh crore. The stock is neither oversold nor overbought on charts, signals its relative strength index (RSI), which stands at 37.8. 

Drumil Vithlani, Technical Research Analyst at Bonanza Portfolio said, "Tata Power remains in a short-term corrective phase, trading below its key short-term and medium term moving averages, indicating weak momentum. The stock is hovering near the Rs 370–375 demand zone, where buying interest has emerged in the past. RSI is around 40, reflecting muted momentum but also suggesting limited downside unless support breaks decisively. As long as price holds above Rs 370, a buy-on-dips approach can be considered for a mean-reversion move toward Rs 390–400. A sustained close below Rs 368 would negate the setup and may open further downside. Overall bias: Buy on dips with tight risk management; avoid aggressive longs until a MA crossover or RSI strength above 50 appears."

Jigar S Patel from Anand Rathi said, "Support will be at Rs 370 and resistance at Rs 385. A decisive move above the Rs 385 level may trigger a further upside of Rs 390. The expected trading range will be between Rs 370 and Rs 385 for the short-term."

Hitesh Tailor, Technical Research Analyst at Choice Broking said, "Tata Power is undergoing a phase of consolidation after a strong long-term uptrend that earlier led the stock to an all-time high of Rs 416.70. Post this peak, the stock has witnessed a healthy retracement and is now moving sideways, indicating a pause in trend rather than a complete reversal. However, from a short-term trading perspective, caution is advised. For long-term investors, a buy-on-dips approach may be considered in the Rs 325–340 zone, where strong accumulation and long-term support are visible, provided disciplined risk management is followed."

Riyank Arora, Technical Analyst at Mehta Equities said, "Tata Power continues to maintain a strong structural uptrend, supported by consistent buying interest at lower levels. The stock is trading above its key moving averages, with RSI holding in the bullish zone. A breakout above Rs 380 can accelerate momentum. Price target at Rs 390 / Rs 405 with support at Rs 360."