Tata Power shares recovered 31% from March lows; Best time to buy?

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Tata Power Share

Tata Power Share: Shares of the Tata group hit an intraday low of Rs 182.45 on March 28, 2023, to close at Rs 239.35 on August 21, 2023, up 31.18% or Rs 56.9 in nearly five months.

Tata Power shares have gained 31% since March 2023 lows. Tata Group shares peaked at Rs 182.45 on March 28, 2023, and closed at Rs 239.35 on August 21, 2023, up 31.18% or Rs 56.9 in nearly five months. Interestingly, the returns for Tata Power investors over the last five months are lower compared to the returns for the period up to one year.

Shares of Tata Power have gained 10%, 16.30%, 15.13% and 2.86% in the last one month, three months, six months and one year respectively. The stock gained 13.03% in 2023.

In the previous session (Monday), Tata Power shares rose 4.07% to Rs 239.35 on the BSE. Shares of the Tata Group closed at Rs 230.05 on the BSE. It rose 4.47% to touch an intraday high of Rs 240.30 on BSE. A total of 6.28 lakh shares of the company traded at Rs 14.81 crore on BSE. The market value of the company is Rs 76,480 crore.

The stock’s RSI, which is technically at 50.3, suggests that the stock is currently neither oversold nor overbought. Tata Power’s one-year beta of 1 shows how much its volatility fluctuated on average during the period. Tata Power shares stock is trading above its 5-day, 10-day, 20-day, 50-day, 100-day, 200-day moving averages.

Tata Power saw a 22% surge in consolidated net profit to Rs 972.5 crore in the June quarter as compared to Rs 784.6 crore in the same quarter of the previous financial year.

Revenue rose 5% to Rs 15,213.3 crore compared to Rs 14,495.5 crore in the first quarter of the previous fiscal. EBITDA rose 75% to Rs 2,943.6 crore compared to Rs 1,683.4 crore in the June quarter of the previous fiscal.

Here’s what experts have to say on Tata Power shares

Vaishali Parekh, Vice President, Technical Research, Prabhudas Lilladhar, said, “The stock has indicated higher low formation and corrected bias with bullish candle formation pattern and further upside is expected in coming days. Period support is around Rs 230. On upside we can expect 252-254 area as our next target.”

Aditya Gaggar, Director, Progressive Shares, believes the stock will reach Rs 281 in the long term.

Towards the end of July in 2023, Tata Power shares experienced a breakout from an inverted head and shoulders formation. Following that, the stock market underwent a correction and completed its pullback move. Recently, there has been a consolidation breakout indicating the resumption of the primary uptrend. These signs suggest that the stock market is headed in a positive direction and may be a good investment opportunity. The trend-following indicator ADX is at 24, which is the beginning of the trend. As per upside head and shoulders formation, the target is Rs 281.

Osho Krishnan, Senior Analyst, Technical and Commodities Research, Angel One, said, “Tata Power has been an excellent performer in the current financial year and has rallied nearly 30 percent since the lows of Rs 180. On the technical front, the stock is in a cycle of higher highs-higher lows and the critical barrier of Rs 250-odd zone.

Approaching, In broader time frames, the mentioned level has acted as a strong barrier and crossing it will be a tough task. But on the levels front, Rs 230 is likely to negate any short-term downside losses while the sacred support lies in the Rs 218-215 region. Hence, as per historical data, an official breach above Rs 250 is likely. A new long term will only take place. 263-267 zone is the next possible resistance. Meanwhile, the downside is good for bulls and the stock is likely to hover in the mentioned zone from a short-term perspective.”

SMC Global has a Buy rating on Tata Power with a target price of Rs 255-259. A stop loss of Rs.215 should be maintained.

Tata Power shares is experiencing a gradual improvement from its lowest point and is currently observed to be trading within an upward channel, forming a pattern with a higher base. A few weeks ago, the stock managed to break out of its long-term bearish channel and since then it has been trading within a range. The price may trade in the Rs 220-240 range.

Additionally, The stock is trading well above its 200-day exponential moving average and daily and weekly intervals. We expect the bullish trend to continue again in the coming weeks. A positive divergence on the secondary oscillators indicates further bounce in prices. Thus, one can move towards 255- with losses below the Rs.215 level. The stock can be bought at Rs.228-230 level at Rs.259 SMC Global.

Abhijeet of Tips2Trades, “Tata Power is bullish with the next resistance at Rs 245.3 on the daily chart. A daily close above this resistance may take a target of Rs 255 in the near term. Support lies at Rs 228.5.”

Also Read: Jio Financial Services shares traded at Rs 265 on BSE

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