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Business News/ Markets / Stock Markets/  Jaiprakash Power shares jump after announcement of divestment. Should you buy?
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Jaiprakash Power shares jump after announcement of divestment. Should you buy?

Jaiprakash Power shares are rising due to the announcement of divestment plan by the company in regard to Nigrie Cement Grinding Unit and other non-core assets, say experts

Jaiprakash Power Ventures shares are looking positive on chart pattern and may go up to ₹13 apiece levels, believe stock market experts. (MINT)Premium
Jaiprakash Power Ventures shares are looking positive on chart pattern and may go up to 13 apiece levels, believe stock market experts. (MINT)

Despite weakness in stock market today, Jaiprakash Power shares witnessed strong buying interest in opening bell today. In early morning deals, bulls outperformed bears as Jaiprakash Power share price today opened upside and went on to hit intraday high of 8.45 apiece levels, logging around 3.50 per cent higher from its Friday close of 8.15 apiece on NSE. However, profit booking soon triggered in this energy stock and the stock retraced near 2.5 per cent from its intraday high to 8.10 apiece levels.

According to stock market experts, Jaiprakash Power shares are rising due to the announcement of divestment plan by the company in regard to Nigrie Cement Grinding Unit and other non-core assets of the company. This has worked as short-term trigger for the company that helped the stock open with an upside gap despite weakness on Dalal Street. They said that the stock has made 'V' shaped recovery on chart pattern and it may give sharp upside movement in short term. They advised shareholders of the company to hold the stock whereas fresh buyers can buy the stock above 11.20 levels.

Speaking on the reason for gap up opening for Jaiprakash Power shares, Manoj Dalmia, Founder & Director at Proficient Equities said, "Jaiprakash Power share price has opened upside despite sell-off in early morning deals on Monday. Major reason for this upside opening is company's announcement just ahead of the market opening today. The company has announced to divest its Nigrie Cement Grinding Unit and other core-assets of the company, which worked as short term trigger for the company. However, the stock is looking positive on chart pattern and shareholders of the stock may continue to hold the scrip maintaining trailing stop loss at 7.10 apiece levels."

Echoing with Manoj Dalmia's views, Anuj Gupta, Vice President — Research at IIFL Securities said, "Jaiprakash Power shares have strong support at 6.50 levels whereas it is facing hurdle at 9.50 and 11.00 apiece levels. The stock is looking positive after the V shape recovery followed by breakout. If the stock sustains above 9.50 apiece levels, it may go up to 11 to 12 apiece levels."

On whether a fresh investor can buy Jaiprakash Power shares, Manoj Dalmia said, "One should buy the scrip only when the stock gives breakout above 11.20 on closing basis. After this breakout, the stock is expected to become highly bullish and may soon go up to 12.90 to 13 apiece levels in short term."

 

In its exchange communication today with BSE, Jaiprakash Power Ventures Limited informed Indian bourses about the divestment citing, "In continuation to our letter dated 9th October, 2022, this is to inform you that the Board of Directors in their meeting held today, the 10th October, 2022, have, inter-alia, decided to divest Company's Nigrie Cement Grinding Unit as well as other non- core assets."

The aforesaid board meeting commenced at 08.15 AM and concluded at 08.55 AM on 10th October, 2022.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 10 Oct 2022, 10:11 AM IST
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