Torrent Power, NTPC, Tata Power: Trading strategies for power stocks

The medium-term trend on BSE Power Index is bullish as long as the support of 2,700 is upheld.

Shares of power generation and distribution companies extended their rally on Tuesday with the BSE Power index hitting a 10-year high of 3,008 on the BSE. Among individual stock, Adani Power and Torrent Power claimed new all-time highs while Tata Power hit a fresh 52-weeks high. 

In the past one week alone, the S&P BSE Power index has surged 6 per cent, against less than 1 per cent gain in the benchmark index after Ministry of Power (MoP) released a discussion paper on the implementation of Market-Based Economic Dispatch (MBED) which argues for redesigning of day- ahead scheduling of electricity markets