Tata Power shares climb 3%; what's next for this multibagger stock?

Shares of Tata Power Company Ltd rose 2.74 per cent to hit a high of Rs 399 in Thursday's trading session. At this price, the multibagger stock has gained around 116 per cent in a year.

Around 4.32 lakh shares were last seen changing hands on BSE today. The figure was lower than the two-week average volume of 9.80 lakh shares. Turnover on the counter came at Rs 17.11 crore, commanding a market capitalisation (m-cap) of Rs 1,26,775.10 crore.

On technical setup, major support on the counter could be seen at Rs 384. And, a decisive close above its immediate resistance level of Rs 400 is required for further upside. 

"One can buy Tata Power shares at current market price with a stop loss of Rs 392. Upside targets will be Rs 425-430," Rajesh Palviya, Head Technical Research at Axis Securities, told Business Today TV.

"Tata Power is sideways to bullish with strong support at Rs 384. A daily close above resistance of Rs 400 could lead to an upside target of Rs 422 in the near term," said AR Ramachandran from Tips2trades.

"Support will be at Rs 390 and resistance at Rs 400. A decisive close above Rs 400 level may trigger a further upside till Rs 420. Expected trading range will be between Rs 380 and Rs 430 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 61.08. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Tata Power has a one-year beta of 0.7, indicating low volatility on the counter.