Tata Power share price rose to new all-time highs of Rs 477.85 on Thursday, continuing a strong rally that has seen it gain 12.3 percent in the last month. With that, Tata has far-outsperformed the Nifty Energy Index to which it belongs, as the Index has only gained 0.4 percent in the last month.
The strong upward momentum could draw new investors to Tata shares, and potentially set the stock on its way to hitting multiple all-time-highs in the coming days. The Average Directional Index (ADX) reading on the daily chart is at 21, affirming the strong upward trending market. An ADX reading of between 20-40 is generally considered strong.
Investor sentiment surrounding Tata Power (NSE: TATAPOWER) share price is positive, based on its performance on the futures market. The continuous contract for the stock was up by 2.2 percent for the day and traded at Rs 478 at the time of writing.
The company’s bottomline is strong, underlined by +13.6% revenue jump in its last quarterly earnings. Furthermore, its EPS exceeded forescasts in the last three quarters, with the April-June quarter yielding +12.9%. Tata Power has beaten analysts’ revenue forecsats estimates in the last five quarters, showing good management practices and profitable business strategy.
The RSI momentum indicator on Tata Power share price calls for further upside above the Rs 473.30 pivot mark. That will likely see further gains to encounter the first resistance at Rs 480.45. However, a break above that barrier could clear the way for further gains to test Rs 485.35.
Conversely, the sellers will have the upper hand if the price moves below 473.30. If that happens, the firt support could come at Rs 466.30. Nonetheless, a stronger downward momentum could break below that level. In that case, the upside narrative will be invalid. Instead, the decline could extend the downside to test Rs 460.00.
This post was last modified on Sep 26, 2024, 11:15 BST 11:15