Amid rising power demand; Adani Power, NTPC, Coal India look firm on charts

Among individual stocks, Coal India can surge up to 17%; Adani Power, Adani Transmission, NTPC and Tata Power are likely to gain in the range of 10-14 per cent.

After a slow down in the recent past years on account of the Covid-19 pandemic, the power sector seems all set for a strong rebound with demand growth rate for power seen nearly doubling over the next five years.

The Central Electricity Authority (CEA), an advisory body to the power ministry, said in a draft plan India's power demand would reach 1,874 bn units during the year ending March 2027, compared with over 1,320 bn units in 2021/22.

India would add power generation capacity of 165.3 gigawatts (GW) over five years ending March 2027, most of which would be renewable energy, according to the plan. That would represent a 41 per cent increase from current installed capacity of 404.1 GW, the report added.

Given this background here's a technical outlook on select power stocks:
 

Adani Transmission Ltd (ADANITRANS)

Likely target: Rs 4,500

Upside potential: 12.5%
 

If shares of Adani Transmission succeed in taking-off the hurdle at Rs 4,000-mark, the next leg of upside could see a rally towards Rs 4,500. The immediate support for the stock is seen at Rs 3,800, and until this mark is protected, the positive bias is here to stay. The weekly and monthly charts are signalling optimistic outlook, however, a sideways movement or mild dip cannot be ruled out. Having said that, the broader trend looks robust. CLICK HERE FOR THE CHART

NTPC Ltd (NTPC)

Likely target: Rs 190

Upside potential: 14%

The resilient chart pattern has not breached the 200-day moving average (DMA) since February 2021. The 200-DMA is currently placed at Rs 139.60 level. The recent breakout over Rs 160 has now triggered a fresh upside rally. The bullish bias appears to be heading towardsd 190 to Rs 200-mark, with immediate support for stock positioned at Rs 155 level. CLICK HERE FOR THE CHART

Adani Power Ltd (ADANIPOWER)

Likely target: Rs 432

Upside potential: 10%

Adani Power broke out on upside post conquering the Rs 350 level. The trend is reluctant to bear any weakness as the Relative Strength Index (RSI) manages to sustain in the overbought category, despite some selling pressure. The current trend may see a rally towards the recent peak of Rs 432. On the downside, immeidate support for the stock comes at Rs 380 level. CLICK HERE FOR THE CHART

Tata Power Co. Ltd (TATAPOWER) 

Likely target: Rs 270

Upside potential: 11%

The stock has broke out of an 'Inverse Head and Shoulder pattern' on the daily chart, which is generally considered as a bullish trend reversal. The pattern points at a positive rally to Rs 270. The immediate support falls at Rs 235 level. The optimistic bias is proactively supported by the Moving Average Convergence Divergence (MACD), which safely trades over the zero line. CLICK HERE FOR THE CHART

Coal India Ltd (COALINDIA)

Likely target: Rs 275

Upside potential: 17%

Coal India shares soared nearly 30 per cent since June 2022. The trend is precisely up and the underneath sentiment is very optimistic. The “Higher High, Higher Low” formation, a bullish pattern which signifies a robust upward strength, continues to claim higher ground. As of now, until the stock sustains above Rs 225, the positive rally is anticipated to scale to Rs 275, shows the daily chart. CLICK HERE FOR THE CHART