Energy stocks in focus: Energy stocks are currently in focus, with analysts maintaining a positive outlook on Adani Power and Suzlon Energy, expecting potential upside in both.
Both companies are among the major players in India’s energy sector. Suzlon Energy is a constituent of the BSE 100 index, with a market capitalisation of Rs 72,605.27 crore. Meanwhile, Adani Power, also part of the BSE 100, commands a significantly higher market capitalisation of Rs 3,82,608.34 crore.
“Look, I believe he has entered at a good level, and there is strong momentum in the stock. However, in the short term, since a rally has already happened, some volatility will definitely be seen in this stock due to its nature,” he said.
Thaker pointed to a strong technical breakout in Adani Power on higher timeframes, indicating further upside potential.
“But when I was looking at the weekly charts while the question was being asked, a strong breakout had occurred on the weekly timeframe. It seems to me that if your horizon is one year, then based on the chart structure forming in Adani Power, there is a good chance that levels of Rs 240 – Rs 250 may be seen in the coming days,” he added.
Volatility ahead for Energy Stock
At the same time, he cautioned that the upward move may not be linear. “However, the journey to Rs 240 will not be straightforward. There will be volatility on the way,” he said.
Investment strategy
Reiterating his bullish stance, Thaker advised investors to stay invested while managing risk based on their comfort with market swings. “So my view is bullish. A fresh breakout has happened, the stock is trading above its all-time high with strong volumes. So the advice is to hold,” he said.
“If you have patience and risk tolerance, then hold it. If you are afraid of volatility, then you may consider booking some partial profits,” he added.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
