JSW Energy On Breakout From Contracting Triangle: Time For Upward Trend?

JSW Energy is a large-cap company that recorded a market cap of Rs 42,958.93 Cr on Friday's closing session. One of India's leading private-sector energy producers is JSW Energy Limited. JSW Energy is on a breakout from the contracting triangle signals the acceleration of an upward trend, according to research experts at ICICI Direct Research. Analysts have suggested buying the stock around the Rs 264-272 level, with a stop-loss of Rs 249 and a target price of Rs 312. They have set a target frame of 3 months.

Research analysts of ICICI Direct Research, Dharmesh Shah, Nitin Kunte, Ninad Tamhanekar, CMT, Pabitro Mukherjee, and Vinayak Parmar said power sector stocks have witnessed buying interest recently indicating more broad-based midcap rally. JSW Energy has been in a larger consolidation pattern for over twenty months now seen breaking out of a triangular base formation over the past three months. Thereby, offering fresh entry opportunity.

"Structurally, share price has been in a corrective phase after its multi-fold rally in 2020-21. On multiple occasions since June 2022 stock price held Rs 200 levels signalling that various negatives are now priced in and durable bottom at 200 is in place. Over next few months we expect share price to head towards Rs 315 which is pattern implication of a triangle range (Rs 275-240) as projected from breakout level of Rs 275," they said.

On Frisay, the shares of Jsw Energy closed on the BSE at Rs 261.20 apiece down by 4.04% from the previous close of Rs 272.20. The stock made a 52-week-high of Rs 369.00 on (05/09/2022) and a 52-week-low of Rs 197.50 on (23/06/2022).

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