Shares of Tata Power breached the key support zone during correction in the previous session. The stock, one of the widely tracked scrips in the power sector, hit an intraday low of Rs 194.45 and closed at Rs 203.25 on BSE on December 26. Tata Power breached the support zone of Rs 200 to Rs 210 during the day. On December 23 too, the stock ended at Rs 197. Tata Power stock hit an intraday low of Rs 196 on the day when Sensex and Nifty crashed amid weak global cues. With the dip, the Tata Power stock came close to the 52-week low of Rs 190 hit on June 20, 2022.
However, shares of Tata Power ended 2.19% higher at Rs 207.70 today. They hit an intraday high of Rs 208.30, rising 2.48% on BSE. Tata Power shares stand lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Market cap of the firm stood at Rs 66,367 crore.
The stock has lost 30.53% from its 52-week high of Rs 298 hit on April 7, 2022.
The stock breaching its support level might be a signal that the correction phase in the stock is over. However, analysts suggest that it might not be a good time to buy after the recent recovery. Here’s a look at what they said about the prospects of the stock.
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Abhijeet from Tips2trade said, “Rs 190-200 is a strong support zone for Tata Power. A weekly close below this zone could lead to Rs 165-140. Rs 235 is a massive resistance. Investors should buy if weekly close is above Rs 235 for targets of Rs 290-315 in 2023.”
Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One said , “Tata Power has been in a consolidation zone for over a year and is hovering in a broad range of Rs 30-40 odd levels. On the technical parameters, the support of Rs 210-200 augurs well for the buyers, while on the higher end, the zone of Rs 240-245 is a sturdy hurdle in the counter. The stock is expected to hover in the mentioned range, and a decisive breakthrough on either side could only dictate the next leg of rally in the counter.”