Key Events This Week
9 Feb: Stock opens at Rs.368.75, Sensex up 1.04%
11 Feb: Technical upgrade announced; stock closes at Rs.375.30 (+1.46%)
12 Feb: Technical momentum shift noted; stock gains 1.36% to Rs.380.40
13 Feb: Profit-taking leads to 1.64% decline; week closes at Rs.374.15
Monday, 9 February: Steady Start Amid Broad Market Gains
Tata Power began the week on a positive note, closing at Rs.368.75, up 0.82% from the previous Friday’s close of Rs.365.75. This gain was slightly below the Sensex’s 1.04% rise to 37,113.23, indicating a cautious but stable investor sentiment. Volume was moderate at 138,470 shares, reflecting steady participation without significant volatility.
Wednesday, 11 February: Upgrade Spurs Confidence
The stock gained 1.46% to close at Rs.375.30, coinciding with MarketsMOJO’s upgrade of Tata Power’s investment rating from 'Strong Sell' to 'Sell'. This upgrade was driven by improvements in technical indicators and valuation metrics, signalling a potential easing of bearish momentum. Despite ongoing financial challenges, the technical outlook showed signs of stabilisation, with key indicators such as MACD and Dow Theory shifting towards mildly bearish or mildly bullish stances.
The upgrade highlighted Tata Power’s more attractive valuation, with a price-to-earnings ratio of 31.73 and an enterprise value to EBITDA of 13.20, positioning it favourably relative to peers. However, financial headwinds such as a 23.5% decline in profit after tax and high leverage remained cautionary factors.
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Thursday, 12 February: Technical Momentum Shift Amid Mixed Signals
Tata Power extended gains to Rs.380.40, up 1.36%, despite the Sensex retreating 0.56% to 37,049.40. The day’s price action reflected a subtle but notable shift in technical momentum from strongly bearish to mildly bearish. Key indicators such as the MACD remained bearish weekly but improved monthly, while the Relative Strength Index showed neutral readings, suggesting neither overbought nor oversold conditions.
Additional technical tools including Bollinger Bands and moving averages indicated moderate downward pressure but reduced volatility. Dow Theory readings turned mildly bullish weekly, and on-balance volume showed increased buying interest, supporting the modest price advance. This mixed technical picture suggested a consolidation phase rather than a decisive trend reversal.
Friday, 13 February: Profit-Taking Weighs on Price
The stock retreated 1.64% to close at Rs.374.15, underperforming the Sensex’s sharper 1.40% decline to 36,532.48. Profit-taking after the prior day’s gains and the week’s technical upgrade likely contributed to the pullback. Volume remained robust at 235,541 shares, indicating active trading interest despite the decline.
Despite the dip, Tata Power ended the week with a 2.30% gain, comfortably outperforming the Sensex’s 0.54% loss. The stock’s 52-week range of Rs.326.25 to Rs.416.70 and recent price action suggest moderate volatility with potential for further consolidation.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.368.75 | +0.82% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.369.90 | +0.31% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.375.30 | +1.46% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.380.40 | +1.36% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.374.15 | -1.64% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: Tata Power’s upgrade from 'Strong Sell' to 'Sell' reflects improving technical and valuation metrics, signalling a potential bottoming phase. The stock outperformed the Sensex by 2.84% over the week, supported by mildly bullish weekly Dow Theory and on-balance volume indicators. Long-term returns remain robust, with a ten-year gain of 566.61%, far exceeding the Sensex’s 267.00%.
Cautionary Notes: Despite technical improvements, financial challenges persist. Profit after tax declined 23.5% in the latest quarter, and leverage remains high with a debt to EBITDA ratio of 5.03 times. The price-to-earnings ratio of 31.73, while attractive relative to peers, still reflects elevated valuation risks. The mildly bearish monthly technical indicators and recent profit-taking suggest volatility may continue in the near term.
Conclusion
Tata Power Company Ltd’s performance this week was characterised by a cautious but positive shift in market sentiment. The technical upgrade and momentum shift indicate that the stock may be stabilising after a period of bearish pressure. However, ongoing financial headwinds and mixed technical signals counsel prudence. The stock’s outperformance relative to the Sensex and improved valuation metrics provide some encouragement, but investors should remain vigilant of potential volatility and monitor upcoming financial results closely.
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