Shares of NTPC Green Energy Ltd and KPI Green Energy Ltd continued to advance in Friday’s trade, with investor interest seen in renewable energy counters. At last check, NTPC Green was up 6.43 per cent at Rs 103.89, while KPI Green jumped 5.36 per cent to trade at Rs 416.
Some market experts said renewable energy and power generation companies have been attracting investor interest amid expectations of sustained growth in electricity demand.
Ravi Singh, Chief Research Officer at Mastertrust, noted that power generation and renewable energy stocks are attracting buying interest as the sector’s outlook continues to improve, adding that electricity demand in India has been steadily increasing.
“When power consumption grows, generation companies typically benefit through higher utilisation of their capacity. This expectation of stronger demand in the coming months is one reason investors are showing interest in the sector. Another important driver is the increasing focus on renewable energy. Companies actively expanding in solar and wind projects are gaining attention, as India is pushing aggressively towards clean energy capacity expansion,” he also said.
Kranthi Bathini, Equity Strategist at WealthMills Securities, stated that a potential shift could happen from gas companies to power. He added that heightened activity may be seen in power companies as well as solar-related firms, which is why some momentum is being witnessed in these stocks.
NTPC Green: Short-term view
Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher (PL), said, “After maintaining a strong support near the Rs 84 zone, NTPC Green’s stock has indicated a huge spurt with tremendous volume participation to improve the bias, anticipating a further rise in the coming days. We can expect the next potential targets of Rs 107 and Rs 117 in the coming days. Rs 90 level will be the support, which needs to be sustained to maintain the bias positive.”
According to AR Ramachandran, part-time Sebi-registered research analyst at Tips2trades, “The counter is bullish on daily charts with strong support at Rs 90.14. A daily close above the resistance of Rs 97.4 could lead to an upside target of Rs 114 in the near term.”
KPI Green: Near-term view
Koothupalakkal from PL said, “KPI Green’s has indicated a strong spurt with a bullish candle formation on daily charts with significant volume participation visible, taking support near Rs 335 and thereafter, has improved the bias to expect for further upward move in the coming days. A decisive close above the Rs 425-430 band can further strengthen the trend and can anticipate the next target of Rs 465. Rs 380 will be the near-term support.”
Tips2trades’ Ramachandran said, “The stock looked bullish with strong support at Rs 386. A daily close above the resistance of Rs 421 could lead to an upside target of Rs 469 in the near term.”
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