Tata Power share price declined for the second session in a row on Thursday, as traders ignored news of a major contract deal involving its subsidiary. Tata Power Limited (NSE: TATAPOWER) closed at Rs 439.60, down by -0.2 percent, signaling a downward breakout after trading sideways for much of the last week.
The energy-generating company’s share price was rejected at the psychological round figure mark of Rs 450, and that mark will likely serve as the resistance level in the near-term. Tata Energy’s subsidiary, Tata Power Renewable Energy Limited won the contract issued by the state government of Maharashtra for the development and commissioning of a 200 MW solar-wind hybrid power facility.
The contract also has provision for an additional 200 MW greenshoe option, bringing the total to 400 MW. Meanwhile, TPREL also revealed that it targets to expand its solar generation capacity to 20 gigawatts by 2030. It currently has 5 GW installed and 5 GW under construction.
The momentum in Tata Power’s share price is still strong, as it is above the 20, 50, 100, and 200-day Exponential Moving Average (EMA) on the daily chart. However, the 1-hour chart signals that the stock will likely move downward if resistance persists at the 446.55 pivot mark. That will likely send the share price to the first support at 436.30.
However, the price action could go lower if the sellers extend their control and breach that mark. That could test the second support at 423.50. Alternatively, a move above 446.55 will favour the buyers to take control. In that case, the first resistance will likely be at 457.95. However, extended control by the buyers could enable them to break above that level. At that point, it will invalidate the downside view and potentially extend the downside to test the second support at 468.00.
This post was last modified on Sep 19, 2024, 13:22 BST 13:22