NHPC Stock: Sell or Hold Tight?
NHPC, a powerhouse in the PSU sector, saw its shares tumble over 7% today, a significant move amidst broader PSU stock sell-offs. Opening at Rs 95.50, it wasn’t long before the stock plunged to an intraday low of Rs 87.45, marking a downturn exceeding 8%.
Volume Spike
The early hours witnessed a flurry of activity, with over 10.10 crore shares exchanging hands. Despite this, NHPC maintained a position above its longer-term moving averages, though it lagged behind its 5-day counterpart, signaling a mixed sentiment.
Analyst Insight
Rahul from ET NOW Swadesh suggests this dip is a result of investors locking in profits after a bullish run. His advice? Hold off on buying for now due to unfavorable technicals. However, for those looking to enter, Rs 88 is the magic number, aiming for a Rs 92 target with a stop loss at Rs 80.
Price Journey
NHPC’s performance has been nothing short of spectacular, with a 33% rise year-to-date. The last quarter alone boasted a 69% gain, not to mention the impressive 119% and 199% returns over the past one and two years, respectively.
Dividend Delights
NHPC’s dividend track record shines too, with payouts in 2023 totaling Rs 1.85 across two occasions. This pattern of generosity extends back through 2022 and beyond, highlighting NHPC’s commitment to shareholder value.
Takeaway
While the recent dip may alarm some, NHPC’s historical performance and solid dividend history suggest underlying strength. For investors, this could be a temporary setback in an otherwise robust growth narrative.
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