Small-cap power stock KPI Green Energy surges 18% in a weak market; can it rise more? Here's what tech experts say

A small-cap power stock, KPI Green Energy, surged almost 18% on the BSE on Tuesday, December 30, defying weak market sentiment. KPI Green Energy share price opened at ₹404.05 against its previous close of ₹404 and jumped as much as 20% to an intraday high of ₹484.60. Finally, the stock closed 17.55% higher at ₹474.90. Equity benchmark Sensex ended 20 points lower at 84,675.

KPI Green Energy share price trends

KPI Green shares have been under pressure this year, falling about 14% compared to an 8% rise in the Sensex, according to the BSE data. On a monthly scale, it is up nearly 11% in December so far after suffering a loss of 19% in November.

On a longer timeframe of three years, BSE data show the stock has delivered multibagger returns of 388%, while over five years, it has clocked a gain of 7,173%.

What tech charts indicate about KPI Green Energy shares

According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, after spending a prolonged period in consolidation within the ₹405–430 range, KPI Green shares have now confirmed a breakout, indicating a shift in momentum.

The price has moved decisively above this congestion zone and is currently trading near the 455 level, which strengthens the bullish outlook. Patel pointed out that this breakout is further validated by a noticeable surge in volumes, suggesting strong participation and conviction from market participants.

"Such volume-backed moves often signal the beginning of a sustainable uptrend rather than a false breakout. In this context, a buy-on-dips strategy appears favourable. Any retracement towards the 440 zone can be considered an opportunity to accumulate, keeping the broader trend intact," said Patel.

"On the upside, the stock has the potential to advance towards the ₹500 level. A strict stop loss should be placed at ₹400 on a daily closing basis to manage downside risk effectively," Patel said.

KKunal V Parar, VP of Technical Research and Algo at Choice Broking, also expects a healthy upside move in the stock.

Parar highlighted that the stock has confirmed a bullish breakout on the daily chart by moving above the upper band of its falling wedge pattern, indicating a positive reversal in the counter.

Additionally, the stock is sustaining above its 21-day moving average, which suggests that the overall trend remains positive and supports further upside potential.

Parar underscored that the stock has also broken out of its earlier range-bound consolidation, signalling a strong momentum-driven move.

"The daily momentum indicator RSI is trading above the 50 mark, reflecting improving strength and a positive breadth in the counter. Based on the above technical structure, we expect a healthy upside move in the stock towards the levels of ₹500–570, with a strict stop loss at ₹401," said Parar.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.