JP Power share price surges 8% to hit a 52-week high; is there more steam left?

JP Power share price surged 8 per cent in intraday trade to hit a 52-week high of ₹24.86 on the BSE on Friday, July 11, in a weak market. JP Power share price opened at ₹23.17 against its previous close of ₹23.02 and jumped 8 per cent to a one-year high of ₹24.86. However, the stock pared gains and traded 3 per cent higher at ₹23.70 around 2:50 PM.

Shares of Jaiprakash Power Ventures have been on a roll in the recent past. In the last one month, the stock has surged 30 per cent while the stock market has been rangebound.

The small-cap stock hit a 52-week low of ₹12.35 on March 3 this year, but ended 7 per cent higher for the month. It has been in the green since March.

The stock has been rising after media reports suggested that Adani Group, led by billionaire entrepreneur Gautam Adani, has emerged as the highest bidder to acquire Jaiprakash Associates">Jaiprakash Associates (JP Associates).

Acquisition by a well-managed and financially strong Adani group not only bodes well for the company but also for JP Power, wherein JP Associates holds a 24 per cent stake.

According to experts, the stock is trading near key resistance, which signals that investors should wait for a decisive breakout before making a fresh bet.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that JP Power is facing resistance in the ₹24–24.85 zone.

"We recommend a wait-and-watch approach until a decisive weekly close above ₹24 is achieved. If the stock manages to close above this level, it may open the gates for an upside move towards the ₹26–27 range," said Patel.

Anshul Jain, the head of research at Lakshmishree Investments, underscored that after a massive 97 per cent rally in just 10 weeks, JP Power has tested a 73-week high around the ₹24 mark, which is a major resistance zone for the stock.

Jain said that given this runaway move, an ideal scenario would be an eight-week consolidation phase to let the breakout sustain above 24 in a healthy manner.

"We believe the short-term uptrend has likely climaxed for now, and a sideways consolidation is expected to follow. The probable range for this base formation could be between ₹18 and ₹24," said Jain.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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