Suzlon Energy, Adani Power, Tata Power: Trading strategies for these 3 buzzing power stocks

June 21,2024

Indian benchmark indices managed to post modest gains on Thursday despite the volatility in the domestic markets. A slew of domestic and global cues including the Union Budget, monsoon and rate cuts will decide the direction of markets in the coming days. BSE Sensex gained 141.34 points, or 0.18 per cent to settle at 77,478.93. NSE's Nifty50 index advanced 51 points, or 0.22 per cent, to end the session at 23,567.

Some buzzing power stocks namely Suzlon Energy Ltd, Adani Power Ltd and Tata Power Company Ltd are likely to remain under the spotlight of traders for the session today. Here is what Kushal Gandhi, Technical Analyst at Stoxbox has to say on these stocks ahead of Friday's trading session:

 

Tata Power Company | Buy | Target Price: Rs 496 | Stop Loss: Rs 419

The stock of Tata Power is exhibiting a strong primary trend, with a positively sloping 50-day moving average. Currently, the stock is trading within a 16 per cent sideways range and is positioned at the support of the average line, suggesting potential accumulation. It indicates fair relative strength and increasing buyer demand. The price action presents a favourable risk-to-reward scenario, targeting Rs 496 against a protective stop loss at Rs 419.

 

Suzlon Energy | Buy | Target Price: Rs 60 | Stop Loss: Rs 47.50

Suzlon Energy's price action has recently paused after a remarkable surge of 628 per cent from its March 2023 lows. The stock trades in a potential rounding bottom pattern with a 30 per cent depth, suggesting that committed investors are holding their positions. This ongoing pattern suggests further accumulation, which may strengthen the continuation of the primary trend. Additionally, the stock is displaying strong relative strength compared to the overall market, indicating improving buyer demand. We recommend buying Suzlon Energy, with a target price of Rs 60 and a protective stop at Rs 47.50.

 

Adani Power | Buy | Target Price: Rs 900 | Stop Loss: Rs 704

Adani Power's price action is currently exhibiting a volatility contraction pattern. The stock has shown prolonged phases of accumulation alongside a developing uptrend. The decreasing time and price depth correction at higher levels suggest supply absorption at elevated levels. It has also demonstrated high EPS, relative strength, and strong buyer demand compared to the market. We recommend buying Adani Power with a target of Rs 900 and a protective stop loss at Rs 704.