Tata Power Ltd (NSE: TATAPOWER) is an Indian electric utility company based in Mumbai, Maharashtra, India, and is a part of the Tata Group. The core business of the company is to generate, transmit and distribute electricity. With an installed electricity generation capacity of 10,577 MW, it is India’s largest integrated power company. Tata Power has operations in India, Singapore, Indonesia, South Africa, and Bhutan. Tata Power Group has its operations based in 35 locations in India. The thermal power stations of the company are located at Trombay in Mumbai, Mundra in Gujarat, Jojobera, and Maithon in Jharkhand, Kalinganagar in Odisha, Haldia in West Bengal, and Belgaum in Karnataka. The hydro stations are located in the Western Ghats of Maharashtra and the wind farms in Ahmednagar, Supa, Khanke, Brahmanwel, Gadag, Samana, and Visapur. The company installed India’s first 500 MW unit at Trombay, the first 150 MW pumped storage unit at Bhira and a flue gas desulphurization plant for pollution control at Trombay. It has generation capacities in the States of Jharkhand and Karnataka, and a distribution company in Delhi, servicing over one million consumers spread over 510 square km in North Delhi. The peak load in this area is about 1,150 MW.
On the technical front, TATAPOWER has higher highs and higher lows on the daily charts and is currently placed above the long-term supports. In the recent past, after clocking the high of Rs63.25 level, the stock has witnessed a round of profit booking, which dragged the counter below the long-term moving average of 100-DEMA on the daily charts. At the current juncture, the stock is forming a base around Rs50 levels on the lower side and is all set to move higher. The overall chart structure of the counter looks bullish at the current levels forming higher highs and higher lows. This may trigger a fresh round of buying which may take the stock towards Rs63 plus levels. The stock’s performance is in line with the broader markets indicating the inherent strength in the counter and is trading well above the long-term support levels. On the Bollinger band (20,2), the stock price is plotting above the mean indicating the price likely to trend higher. Analyzing the recent volume price action, the volumes have been encouraging in the recent up move indicating strong hands have started accumulating the stock at current levels. On the oscillator’s side, RSI (14) is trading in a comfortable zone of above 50 levels indicating the bullishness in the stock. We expect the counter to continue its outperformance in the coming trading weeks as well and may move towards 65 levels in the short term. Any correction towards the recent support levels of Rs52.25 level may be utilized to average the positions.
Srinivas Krishnan Bobba, Deputy Manager (technical research analysis) Karvy Stockbroking Ltd