NTPC, Adani Power: Power stocks may surge up to 12% on robust trend

So far this year, NTPC has soared 36 per cent, Torrent Power zoomed 39 per cent and Power Grid Corporation of India advanced 21 per cent. Overall trend in these power stocks continues to remain sturdy

Shares of power sector displayed a robust momentum on Tuesday, with NTPC hitting a new historic peak and Orient Green Power Company surging 14 per cent. Similarly, Jaiprakash Power, Urja Global and RattanIndia Power gained over 6 per cent, respectively. 

So far this year, NTPC has soared 36 per cent, Torrent Power zoomed 39 per cent and Power Grid Corporation of India advanced 21 per cent. The overall trend in these power stocks continues to remain sturdy.

Here’s the technical outlook to understand the next move in the power sector:- 

Tata Power Co. Ltd (TATAPOWER) 

Likely target: Rs 270

Upside potential: 12%

The stock has broken out post forming a base near to Rs 225, exactly over the 50-day simple moving average (SMA) set at Rs 217.50, as per the daily chart. Simultaneously, the momentum indicator, Moving Average Convergence Divergence (MACD) took support closer to the zero line. Both of these scenarios suggest positive underlying momentum that could see counter hitting Rs 270-level. CLICK HERE FOR THE CHART

NTPC Ltd (NTPC)

Likely target: Rs 250

Upside potential: 12%

The stock has seen a firm breakout in the overbought category of the Relative Strength Index (RSI), witnessing extensive bullish momentum. For the current bias, the supports locate between Rs 210 and Rs 200 levels, which need to be honoured on the closing basis. The trend suggests a rally to Rs 250-level, as per the daily chart. CLICK HERE FOR THE CHART

Power Grid Corporation of India Ltd (POWERGRID)

Likely target: Rs 280

Upside potential: 9%

Power Grid Corporation of India is rising with the “Higher High, Higher Low” formation since early January this year, continuing to meet higher grounds. The underlying trend remains robust, with price action denoting a firm up move. The support falls at Rs 250 and Rs 240 levels, with the current momentum signifying to reach Rs 280. CLICK HERE FOR THE CHART

Adani Power Ltd (ADANIPOWER)

Likely target: Rs 300

Upside potential: 9%

The stock has surpassed the 200-SMA set at Rs 255-level, representing an upward breakout on the daily chart. The volume has seen a surge in recent sessions, reflecting a buying interest in the stock. The support for the present bias stays at Rs 250, with price action heading towards Rs 300-mark. CLICK HERE FOR THE CHART

JSW Energy Ltd (JSWENERGY)

Likely target: Rs 325

Upside potential: 10%

The 100-weekly moving average (WMA) is clearly indicating its relevance around the price action. The stock has crossed this moving average a few weeks ago and now retesting the same support, placed at Rs 286. Until this support is defended, the medium-term outlook could see the counter heading towards 325-mark, its next major hurdle. CLICK HERE FOR THE CHART