This Tata Group stock, having healthy dividend payout, witnessed a powerful breakout; watch out!

Karan Dsij
/ Categories: Trending, Mindshare
This Tata Group stock, having healthy dividend payout, witnessed a powerful breakout; watch out!

The daily 14-period RSI has witnessed a breakout of a consolidation pattern and with this, it moved above its prior swing high and is in bullish territory.

On Tuesday, Nifty was seen trading up by 0.25 per cent; however, after opening with a modest gap-up, the index moved above the 17,750 mark but failed to sustain higher as profit-booking emerged and it went on to touch a low of 17,587.65 on an intraday basis. However, we have seen the market rebounding from the lower levels, led by Nifty Energy and Nifty PSU Bank.   

The banking & financial sector is showing resilience as Reserve Bank of India’s (RBI) Governor Shaktikanta Das said in his statement that India’s banking system is sound and can prevent any negative spillovers from external headwinds. Furthermore, he said that after Federal Reserve Chairman Jerome Powell's remarks during Jackson Hole Economic Policy Symposium 2022, the stock markets globally have become extremely volatile and uncertain.   

Meanwhile, Shaktikanta Das said that going ahead, India's monetary policy will remain watchful, nimble-footed & calibrated.   

Amidst all this, there is one stock that has witnessed a breakout of cup & handle-like pattern. And what’s important is the fact that this stock belongs to the prestigious Tata Group! Moreover, the company has a good dividend track record and consistently declared dividends for the last five years.   

You must be eager to know as to which stock we are talking about! Finally, we would reveal the name: It’s Tata Power. The stock has nearly broken out of a four-month long cup & handle pattern along with robust volume as the stock recorded the highest single-day volume since June 20, 2022. Moreover, the volume for the day is more than two times the 50-day average volume thereby, highlighting larger participation in the direction of the trend.   

The daily 14-period RSI has witnessed a breakout of a consolidation pattern and with this, it moved above its prior swing high and is in bullish territory. The daily MACD has recently generated a buy signal, which is seen sustaining above its nine-period average; thus, validating positive bias in the stock.   

DII and FII holdings in the stock stand at 14.7 per cent & 10.1 per cent, respectively while the company has been maintaining a healthy dividend payout of 39.1 per cent. 

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