Inox Wind, JSW Energy: Power stks soar over 100% in 2 months; time to sell?

Chart suggests that shares related to green and renewable energy may display mixed trend in early 2024, given the sharp rally seen in the last two months.

Shares of power generation sector - green and renewable energy - are likely to be on investors radar as India makes progress towards its ambitious target of having 500 GW of renewable energy by 2030. India has committed a net zero emission target by 2070. 

In the upcoming calendar year, the country would see more than 83 per cent increase in investments in renewable energy projects to around $16.5 billion, according to estimates from the power ministry.

On the bourses, the BSE Power index has registered a gain of 30 per cent for the calendar year 2023. Data shows, that the gains are as high as 76 per cent when compared from the year's low till date basis.

Among individual stocks, Inox Wind and Websol Energy have rallied 330 per cent and 160 per cent so far in 2023. On the other hand, Adani Green and Borosil Renewable are down 17 per cent each.

However, when compared to the yearly lows, Adani Green has vaulted over 264 per cent, while Borosil is up merely 11 per cent. 

For calendar year 2024, here's what the chart suggests for these select green and renewable energy related stocks.

Adani Green

Current Price: Rs 1,624 

Upside Potential: 48%

Support: Rs 1,440

After the sharp fall at the start of the year, Adani Green consolidated for the major part of the calendar year 2023. The stock, however, has picked-up some momentum since late November and has surged 74 per cent in the last 5 weeks. 

Presently, the stock is trading in overbought zone, and seen testing some resistance around its 100-WMA (Weekly Moving Average) placed at Rs 1,565 level. As and when the stock conquers this hurdle, on a weekly closing basis, it can potentially rally towards Rs 1,900, wherein stands the 20-MMA (Monthly Moving Average). Beyond Rs 1,900, the stock can rally all the way up to Rs 2,400, suggests the long-term chart.

On the downside, the near-term bias is likely to remain favourable as long as the stock sustains above Rs 1,440, with following support expected in the Rs 1,325 - Rs 1,350 zone. CLICK HERE FOR THE CHART

Inox Wind

Current Price: Rs 456

Downside Risk: 23%

Key support: Rs 430

Shares of Inox Wind have witnessed a steep ascend since early November, with the stock rallying over 123 per cent in the last two months. The stock continues to trade on a buoyant note, on multiple time-frames, but seems fairly overbought on the charts.

The weekly chart suggests that the bias is likely to remain bullish as long as it trades above Rs 430 levels. Whereas, the major support on the monthly chart is placed around Rs 350 levels. Thus, highlighting a potential downside risk of up to 23 per cent in case of a price correction. CLICK HERE FOR THE CHART

Websol Energy System

Current Price: Rs 252

Downside Risk: 19%

Support: Rs 1,440

Websol Energy System has zoomed over 240 per cent since mid-July. The stock, which, is trading in overbought zone, has seen select momentum oscillators turn negative in recent trading days. Thus, suggesting that the stock is likely to consolidate, or correct in the near-term.

The long-term chart suggests that the stock can dip to Rs 205 levels, whereas on the upside the stock is expected to face resistance around Rs 280-odd levels. CLICK HERE FOR THE CHART

Sterling & Wilson Renewable Energy

Current Price: Rs 438

Upside Potential: 16%

Support: Rs 395; Rs 380

Shares of Sterling & Wilson Renewable Energy have witnessed a V-shaped recovery post its sharp fall since the month of August. The stock has more-than-recovered the entire fall, and now seems on course to test 138.20 per cent price extension of the previous slide at Rs 469, above which the next targets are placed at Rs 488 and Rs 508.

In case, the rally halts around one of the above hurdles, a price correction thereafter can be expected. As such, traders should keep a close eye on the support zone around Rs 380 - Rs 395. CLICK HERE FOR THE CHART

JSW Energy

Current Price: Rs 414

Downside Risk: 15.5%

Key support: Rs 350

The stock is presently testing support around it 20-WMA (Weekly Moving Average) which stands at Rs 402. As long as the stock holds this support, it can potentially bounce back to Rs 455 in the near term.

The longer-term chart suggests that the stock is likely to trade with a favourable bias as long as it holds above Rs 350-level. On the upside, sustained trade above Rs 440 level shall help the stock regain fresh upside momentum. CLICK HERE FOR THE CHART