Tata Power shares hit lifetime high despite 120% rally in one year. Do you own?

Tata Power shares extended its winning streak for a third straight session on Monday and touched an intraday high of ₹447.65 per share on NSE, logging an intraday high of 2.50 percent showing a slow and steady upside movement. However, while climbing to its intraday high, the Tata Group stock touched a new lifetime high on Monday. According to stock market experts, the market is betting high on Tata Power shares due to the rise in demand in the current summer season. They said that Tata Power Ltd is expected to deliver strong quarterly numbers in the next two to three quarters, which has fueled demand for Tata Power shares. They said that Tata Power shares have given fresh breakout at ₹443 per share level and it is expected to touch ₹460 to ₹470 apiece level in the near term.

Why are Tata Power shares skyrocketing?

Speaking on the reason for the continuous rally in Tata Power shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Tata Power shares are rising because the market is expecting strong quarterly numbers from the company in the next two to three quarters due to rise in demand for electricity during summer season. As electricity demand is expected to increase, Tata Power and many other power-producing companies are expected to generate higher volume during this high-demand season. So, the market is discounting on that rising demand and business volume of the company in coming quarters."

Tata Power share price target

Expecting further upside in Tata Power shares, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi said, "Tata Power shares have been continuously rising and Tata Power share price today gave a fresh breakout at ₹443 apiece. The stock is looking strong on chart pattern and any dip in the stock should be seen as a buying opportunity by investors."

The Anand Rathi expert maintained that Tata Power shares have made a strong base at ₹425 and on the upper side, it is facing a hurdle in the ₹460 to ₹470 zone. However, the stock is looking positive on the chart pattern and its current support may remain a sacrosanct base in the short term. He advised positional investors to buy Tata Power shares at the current price maintaining a stop loss at ₹425 for a short-term target of ₹460 to ₹470 per share.

On the suggestion to the Tata Power shareholders, Ganesh Dongre of Anand Rathi said, "Tata Power shareholders can maintain buy-on-dips strategy till the stock is above ₹425 level."

Tata Power share price history

Tata Power shares are one of the multibagger stocks that belong to the Tata group stocks. This multibagger stock has risen from nearly ₹200 to ₹447 apiece levels, delivering more than 120 percent return to its positional shareholders in one year.