CG Power Shares: SEBI Analysts See Breakout Rally Ahead, Flag Nearly 15% Upside Potential
Synopsis
With strong volume confirmation and trendline support, the stock is seen heading toward ₹820 in the near term, according to analysts.
CG Power shares extended gains on Monday, rising over 3%, after brokerage firm Morgan Stanley initiated coverage with an "overweight" rating. It has set a target price of ₹799 for its base case, suggesting a 15% potential upside. Its "bull case" target price of ₹1,044, implies a potential upside of 50% from Friday's close.
Morgan Stanley believes that CG Power is a strong beneficiary of the strong growth seen in India's transformer and switchgear segments.
Last week the company's subsidiary launched its semiconductor assembly and testing facility in the state of Gujarat.
SEBI-registered analysts on Stocktwits have also shared bullish calls on the stock. Let’s take a look at their Buy recommendations.
CG Power: Trading Strategy
Analyst Palak Jain recommended buying CG Power above ₹711, with stop loss at ₹625 for target price of ₹732, ₹753 and ₹796. She said that the resistance breakout above the descending channel confirms bullish technical momentum. Additionally, a strong volume spike supports the validity of the breakout, indicating aggressive buyer activity.
The price structure has shifted from sideways consolidation to a potential upward trend. Jain added that the current setup provides a well-defined entry zone, backed by momentum and volume confirmation.
Analyst Dhruv Tuli is also bullish on CG Power, driven by its trendline breakout. He added that the Relative Strength Index (RSI) and volumes confirm strength. Also, the stock is holding above its 50, 100, and 200-day Exponential Moving Average (EMA).
Tuli recommended buying CG Power at ₹690–₹700, with stop loss at ₹640 and target prices at ₹740, ₹780, and ₹820.
What Is The Retail Mood?
Data on Stocktwits shows that retail sentiment has been ‘bullish’ on this counter for a month amid ‘high’ message volumes.
For the year so far, CG Power stock is down 2%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.