Tata Power stock is forming a 9-week, 21% deep Consolidation Base. The current price is only 5% away from its ideal buy price of INR 115. This is a bullish sign, but the current price of the stock is still below the 10-week moving average. A prudent approach would be to add the stock to your watchlist. This means you can be ready to pounce as the stock moves above the 10-wma line and breaks out to the ideal entry point.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around 5.57% away from the 10-week moving average.
Tata Power has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 88. In the last twelve months, the stock has rallied over 260.4% as compared to 60.7% for the Nifty500.
The Relative Strength Line of the stock is offering a lot of encouragement to investors. It has been making good progress in the last four weeks. The overall long term trend of the line is also trending upward. If Tata Power can maintain this outperformance, it could make sense as a CANSLIM trade.
Tata Power stock has a strong institutional support. The Accumulation/Distribution Rating of 'A-' represents heavy institutional buying over the past few weeks. Although the shares held by institutions dropped in the last quarter, the number of institutions holding the stock increased at the same time. This shows increasing interest among the institutions.
On the earnings front, Tata Power has a respectable EPS Rank of 72, which is okay but needs improvement. The sales for the stock have grown by 2% over the past three years; however the earnings growth remained muted at -33%. Its 3-years earnings stability is 20, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 12% and 1%, respectively. The 5-years earnings stability is 61. The return on equity for the last reported year is 8%.
The current price of Tata Power is -5% off from its 52-week high price and 304% above its 52-week low price. The stock belongs to the industry group of Utility-Electric Power, which is exhibiting excellent strength in the current market environment. The current industry group rank is 20.
The stock appears on our idea lists: Trend Template - 5 Months