As the mercury climbs each summer, so does the demand for electricity across the country. Air conditioners, refrigerators, and industrial cooling systems run full throttle, putting the power grid under tremendous pressure. But for market participants, this seasonal surge often brings a ray of opportunity. Historically, power stocks have displayed a strong pre-summer and peak summer rally, and this year is shaping up no differently. Companies involved in generation, transmission, and distribution benefit from higher consumption, leading to a visible uptick in stock prices.
In fact, the recent box plot analysis from Dalal Street Investment Journal reaffirms this trend. Power sector returns from February to June across five years show a recurring seasonal spike. The year 2021, for instance, saw an exceptionally strong showing, while 2023 also delivered stable performance. The consistency of positive returns during this window provides a strong case for short-term trade setups.
According to a recent Business Today article, the March quarter saw subdued power demand, with generation growth at just 5.8%—the slowest since the pandemic. Yet, brokerage house JM Financial remains upbeat, recommending select power stocks for their robust fundamentals and long-term growth potential.
Take Suzlon Energy, for example. It has a record order book of over 3,800 MW, diversified across regions and client types. JM sees a 14% upside from current levels, driven by its strong execution track record and healthy bid pipeline. Meanwhile, BHEL has benefitted from a 19% YoY rise in sales, improved operational efficiency, and a beefy order book, warranting a target price of ₹361. ACME Solar, another standout, is aggressively scaling up its renewable energy portfolio with nearly 7 GW under its belt and a bullish target of up to ₹330.
From a chartist’s perspective, the box plot visualization offers compelling insight into the power sector’s behavior. Stocks like NTPC and JSW Energy have often seen strong April–June performances, with narrow interquartile ranges suggesting stable returns. The upper whiskers in some years highlight significant outperformance, especially during high-demand months.
This technical backdrop syncs well with the macro environment. Longer daylight hours enhance solar power generation, and proactive government measures—like policy support, tariff regulation, and PPA reforms—help keep supply disruptions in check. These developments have historically translated into improved investor sentiment and price action in power names.
Top Picks for This Summer’s Surge
| Stock | Technical View | News/Trigger |
| Suzlon Energy | Strong base formation with upward bias | Record order book, target price ₹71 (JM Financial) |
| BHEL | Trading in an upward channel with breakout potential | Strong YoY sales growth, target ₹361 |
| ACME Solar | Range breakout on weekly charts with volume confirmation | Large RE capacity, fresh project wins, target ₹330 |
| NTPC | Holding above 50-DEMA, minor pullbacks getting bought into | Seasonal demand, government support for renewables |
| JSW Energy | Higher lows, bullish divergence on RSI | Expansion in green energy and stable earnings |
The power sector may have seen a dull Q4, but forward-looking indicators suggest a spark is coming. Seasonal demand, favorable technicals, and strong brokerage recommendations make a solid case for selective buying in power stocks. Traders can look to ride the summer rally with a short-term perspective, especially in names that align with both fundamental tailwinds and technical resilience.
Ready setups are emerging, and as always, Dr. C.K. Narayan’s insights at Neotrader can help you capitalize with confidence. The electricity in the grid isn’t the only thing about to surge—so might your portfolio
