The stock hit its 52-week high of Rs 27.62 earlier this week on July 14. With a 52-week low of Rs 12.35, the stock had more than doubled over the past year before the recent pullback.
JP Power is currently under the ASM (Additional Surveillance Measure) framework – Stage 1, a regulatory measure aimed at controlling excessive volatility and protecting retail investors.
Technical View:
Moving Averages: Despite the recent correction, the stock remains technically strong, trading above 7 out of 8 key simple moving averages (SMAs). It is currently above the 10-day to 200-day SMAs, although it has slipped below the 5-day moving average, reflecting short-term weakness.
Relative Strength Index (RSI): The 14-day RSI stands at 69.8, which is just below the overbought threshold of 70. An RSI above 70 suggests a stock may be overbought, while below 30 is considered oversold.
Investors should monitor price action closely, especially with the stock under ASM surveillance and showing signs of near-term volatility after a sharp recent rally.
Adani buzz and resolution hopes
The rally last week was largely sparked by reports that the Adani Group had submitted a bid to acquire the debt-laden Jaiprakash Associates, a company linked to JP Power via a corporate guarantee on a $150 million external commercial borrowing, later converted into a Rupee loan.
HDFC Bank to consider first-ever bonus share issue on July 19
JP Associates is undergoing insolvency resolution and has reportedly attracted six bidders: Adani, Vedanta, JSPL, Suraksha Group, Dalmia Bharat, and PNC Infratech. The proposals are understood to be for acquiring the company in full. The strategic implications of the resolution process have brought JP Power into sharp focus, fueling both price and volume action in recent sessions.
