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Shares of Adani Power Ltd and Tata Power Ltd are among the most popular trading and investment bets in the power sector. Both stocks have delivered multibagger returns in three years. While Adani Power stock surged 902%, shares of Tata Power zoomed 368.32% during the period. However, the Adani Power stock has managed to generate over 262% returns in two years against a 51.20% rise in Tata Power in the same period.
In the current session, Tata Power shares were trading over 3.5% lower at Rs 253.60 on BSE. The power stock has gained 20.43% this year and gained 16.44% in a year.
Total 5.14 lakh shares of the firm changed hands amounting to a turnover of Rs 13.27 crore. Market cap of the Tata Group firm declined to Rs 81,449 crore in the afternoon session. The stock has a beta of 1, indicating high volatility in a year.
In terms of technicals, the relative strength index (RSI) of Tata Power stands at 60.9, signaling it’s neither trading in the overbought nor in the oversold territory. Tata Power shares are trading higher than the 50 day, 100 day, 150 day and 200 day moving averages but lower than the 5 day, 10 day, 20 day and 30 day moving averages.
In case of Adani Power, the stock gained up to 2.84% to Rs 377.50 in the afternoon session today. The power producer’s stock has gained 24.33% this year. Total 9.11 lakh shares of the firm changed hands amounting to a turnover of Rs 33.65 crore. Market cap of Adani Power stood at Rs 1.42 lakh crore in the afternoon session. The stock has a beta of 1.4, indicating high volatility in a year.
In terms of technicals, the relative strength index (RSI) of Adani Power stands at 55.4, signaling it’s neither trading in the overbought nor in the oversold territory. Adani Power shares are trading higher than the 30 day, 50 day, 100 day, 150 day and 200 day but lower than the 5 day, 10 day, 20 day moving averages.
Here’s a look at the outlook of both Tata Power and Adani Power shares and which among the two can be a better pick in terms of returns.
Vaishali Parekh, AVP, Prabhudas Lilladher termed Tata Power as a better pick among the two stocks. “Tata Power has witnessed series of higher bottom formation pattern on the daily chart with near term support visible at around Rs 252 levels and has upside scope in the coming sessions with targets of Rs 288 and Rs 300 once a breakout above Rs 275 is confirmed,” said Parekh.
“Adani Power has also rallied decently finding resistance near the Rs 409 level and has slipped to some extent with near term support at Rs 360 levels. The overall trend is maintained strong and expect for further rise after a short consolidation. Tata Power would be the better pick with the candlestick pattern more appealing with consistent rising pattern confirmed from the ascending channel pattern on the daily chart,” added Parekh.
However, Abhijeet from Tips2trades found Adani Power as better pick. “Apart from corporate governance issues, Adani Power fundamentally looks better than Tata Power with stronger profit growth and return ratios. Technically, Rs 390 is a strong resistance on the Daily charts. Investors should buy only if there is a dip close to the support of Rs 309,” said Abhijeet.
Gaurav Bissa, VP at InCred Equities said, “The structure of Tata Power looks better in comparison with Adani Power in the long term charts. Tata Power was seen consolidating in a narrow range for the last two years and has now given a consolidation breakout on the weekly charts. The stock has also witnessed a bullish flag pattern breakout on the monthly charts which can propel it towards Rs 350 levels.”
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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