Shares of JSW Energy gained 4 percent on June 22 with some market participants seeing more room for the ongoing rally to sustain. Power sector stocks have recently seen heavy buying, indicating a more broad-based rally in the midcap space.
At 12:30pm, shares of the energy company were up 0.2 percent at Rs 275 on the BSE. Even though the stock is down 5 percent year-to-date, it has rallied 440 percent in the past three years.
“JSW Energy has been in a larger consolidation pattern for over 20 months now and is seen breaking out of a triangular base formation of the past three months. Thereby, offering fresh entry opportunity,” said ICICIdirect Research.
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The brokerage firm said that structurally, the share price has been in a corrective phase after its multi-fold rally in 2020-21. On multiple occasions since June 2022, the stock price held Rs 200 levels, signalling that various negatives are now priced in and durable bottom at Rs 200 is in place, it added.
Over the next few months, ICICIdirect Research expects, the share price to head towards Rs 315 which is pattern implication of a triangle range of Rs 275-240 as projected from a breakout level of Rs 275.
ICICI Securities in January had upgraded its rating on shares of JSW Energy to 'hold' from 'sell', whereas in May, Kotak Institutional Equities maintained its 'sell' rating on the stock as it believes that the likelihood of near-doubling of earnings over the next three years on the back of aggressive capacity addition, has already been factored in the stock price.
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