Sunday, August 21, 2022

Does TATA POWER Have Power Of Up Moves?

TATA Naam hi kafi hai, in the last write up we had discussed TATA STEEL and it is working well. All Tata groups stocks are performing well and now Tata Power is looking good on charts. It has charging station contracts in two states. They can get more in the future, that is the reason we are bullish on it.

Monthly Chart: On the longer time frame stock is trading in a range from last 11 months and the range is 200 to 250. We can say it is making Flag and we have to wait for a breakout. If it gives breakout to 250 then it will touch 300 or more. Long-term investors can long from the current levels and immediate support is 200.

Weekly Chart: The stock price has taken fourth time support from 200 levels. Currently, it has made an Inverted Head & Shoulder that is the signal of a trend change. We are waiting for confirmation then we will enter in it for the medium term. Immediate support is around 220 and resistance is around 250.

Fundamental: Tata Power is in the business of Power Generation, Transmission, Solar roof manufacturing, and EV charging station. These business lines are good and demandable in the future. The company is profit making and they are focusing on business expansion. The company has good cash flow and the promoter has increased their shares holding by 10% in September 2020. Return on equity is around 8.5% and they are paying a heavy dividend.



Disclaimer: The contents produced here are purely for educational purposes. They should not be construed as buy/sell recommendations. I am not a SEBI registered Analyst or Investment Advisor. Readers are advised to consult their Investment advisor before taking any decisions based on the above write-up.

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