Hitachi Energy India shares rally 19% to hit one-year high level; here's why

Shares of Hitachi Energy India Ltd (formerly known as ABB Power Products and Systems India Limited) zoomed 18.90 per cent to hit their one-year high value of Rs 9,765.30 in Thursday's trade. The stock was last seen trading 13.60 per cent higher at Rs 9,330. At this price, the multibagger scrip has gained 187.58 per cent in the past one year.

Turnover on the came at Rs 18.60 crore, commanding a market capitalisation of Rs 39,542.10 crore. There were 1,749 buy orders today against sell orders of 1,233 shares on BSE.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a strong bull run in the last 6-7 months. It has maintained the uptrend intact with a big bullish candle formation. One of the reasons could be the expansion plans in the pipeline amid rising power demand which has triggered this price action with huge volume witnessed."

On technical setup, support on the counter could be seen at Rs 9,000, followed by Rs 8,150 level.

"The next higher targets expected are Rs 10,250-11,050 levels in the medium-term timeframe with the Rs 8,150 zone as major support area. Momentum indicator RSI has entered the highly overbought zone and chances of a small correction can't be ruled out. With the bias and trend maintained positive, once the stock consolidates, traders can expect a further rise. At the same time, a decisive breach below Rs 7,500 can weaken this trend," Koothupalakkal stated.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 9,000 and resistance at Rs 9,850. A decisive close above Rs 9,850 level may trigger a further upside till Rs 10,500. The expected trading range will be between Rs 8,500 and Rs 11,000 for a month."

Hitachi Energy is looking to open more global capability centers in India to expand operations, amid growing energy demand and a push to scale up renewable energy generation in the country.

"We are looking at Hyderabad for our GCC ... and also looking at Pune. It might take six months to one year," Venu Nuguri, the managing director and CEO of Hitachi Energy India, told news agency Reuters.

India's power consumption grew by 8 per cent in fiscal year 2023.

(With inputs from Reuters)