Indian Power Stocks: Expert Outlook
Indian equity markets began the week positively, driven by renewed US-Iran talks and robust Q4 earnings reports. Amid this backdrop, several power sector stocks, including Adani Power, Jaiprakash Power Ventures (JP Power), and Reliance Power, are attracting significant trader attention.
Jigar S Patel, Senior Technical Research Analyst at Anand Rathi Share and Stock Brokers, has provided specific recommendations for these buzzing power stocks ahead of the upcoming trading sessions.
Reliance Power: Buy on Dips
Reliance Power has demonstrated strong momentum, having already rallied approximately 50 percent from its recent low. Patel notes that the MACD indicator has shown a bullish crossover from an extremely oversold zone, similar to a signal observed in May 2019, suggesting potential for further upside.
- Target Price: Rs 31-35
- Stop Loss: Rs 26
Any short-term pullback is viewed as an opportunity for traders to buy on dips. The stock is projected to move towards Rs 35 within the next 2-3 weeks if its momentum continues. Immediate support is identified near Rs 26, with resistance around Rs 31. A breakout above Rs 31 could accelerate the next phase of the rally.
Adani Power: Exercise Caution
Adani Power Ltd. appears stretched after a substantial rally. Patel recommends profit booking at current levels and advises against initiating fresh long positions, as the stock is currently trading at elevated valuations in the short term.
- Resistance: Rs 222
- Support: Rs 208
Momentum indicators suggest the price is overextended and in an overbought zone, which may limit immediate gains. The stock's significant trading premium above its 20-day and 50-day DEMA averages indicates that a mean reversion or a healthy correction is possible. Traders should remain cautious and await better entry points following consolidation or a pullback.
Jaiprakash Power Ventures: Buy on Dips
Jaiprakash Power Ventures has delivered an impressive rally of nearly 54 percent from its recent bottom, reflecting strong underlying momentum. Similar to Reliance Power, its MACD indicator has registered a bullish crossover from an extreme oversold zone, echoing signals seen in March 2025 and July 2015, hinting at further upside potential.
- Target Price: Rs 20.62-23
- Stop Loss: Rs 17.5
Short-term pullbacks are considered 'buy-on-dips' opportunities. The stock is expected to reach Rs 23 over the next 3-4 weeks if momentum is sustained. Immediate support is positioned near Rs 17.5, with resistance around Rs 20.62. A breach above Rs 20.62 could trigger the next leg of its upward movement.
Disclaimer: This information is provided for educational and informational purposes only and does not constitute investment advice. Readers should consult with a qualified financial advisor before making any investment decisions.