JP Power shares are experiencing a surge, fueled by speculation of an Adani Group deal and positive technical signals. After a 25% rise in 6 days, further gains of 50% are anticipated.
Penny Stock: Shares of Jaiprakash Power Ventures (JP Power) have been rallying in recent days. In the first 6 trading sessions of July, the stock has climbed approximately 25%. Over the past two months, the stock has yielded a return of over 74%. This surge is attributed to news related to the insolvency process of Jaiprakash Associates and a potential bid from the Adani Group.
Adani Deal Speculation Driving the Increase
There are market discussions suggesting that the Adani Group has placed a bid of ₹12,500 crore for the assets of Jaiprakash Associates. The Dalmia Group is also in the running. These reports have bolstered investor sentiment and led to increased buying in the stock.
67% Return Year-to-Date
In the fiscal year 2024-25 so far, JP Power has delivered a return of approximately 67%, while the Nifty 50 has only increased by 8.2% during the same period. The stock is currently trading around ₹23.85, which is also its 52-week high. However, it is still about 84% below its all-time high of ₹143.40, recorded in January 2008.
What Does the Technical Chart Indicate?
Current Price: ₹22.86
Target: ₹34.30 (50% upside potential)
Support Levels: ₹21.55 and ₹20.25
Resistance Levels: ₹23.90, ₹25.54, ₹27.75, ₹31.60
According to technical analysis, if the stock holds above ₹21.55, the rally could continue in the short term. Remaining above ₹20.25 is also a positive sign for the medium term. Currently, it is testing the Fibonacci resistance at ₹23.90. If a breakout occurs, an upside potential up to ₹34.30 could open up.
