Adani Power shares snap record-breaking run, here are short-term price targets

April 06,2024

Shares of Adani Power Ltd snapped the record breaking run of five sessions on Friday amid weakness in the benchmark indices. The Adani Group stock fell 3.73% to Rs 618.15 against the previous close of Rs 642.15.

Adani Power shares had risen 24% in the last five sessions. It touched a record high of Rs 647 in the previous trading session.  On April 3 too, the stock made a new high of Rs 617.75 on BSE.

Meanwhile, market cap of the firm fell to Rs 2.43 lakh crore in the current session.

A total of 4.06 lakh shares of the firm changed hands amounting to a high turnover of Rs 25.43 crore on BSE. Adani Power stock has risen 67% in six months and gained 233.57% in a year.  The Adani Group stock has a beta of 0.8, indicating very low volatility in a year.

The Adani Group’s stock is trading in the overbought zone, signals the relative strength index (RSI) of Adani Power which stands at 74.6.

The Adani Group stock is trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages signaling the stock is trading in bullish zone.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock recently has given a decent rally from the important 100 period MA at Rs 515 level to cross the significant 50EMA level of Rs 540 to gain strength improve the bias and has indicated a clear breakout above the Rs 590 zone to further strengthen the trend overall. After the consolidation period, the stock has entered a new territory with fresh higher targets of Rs 670 and Rs 735 levels in the coming days. The Rs 590 level would be the major support zone from current levels."

Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox said, “Post forming a sideways consolidation, the price action has triggered the upward breakout over Rs 600-mark. This move is signaling a positive upside for the upcoming sessions. Immediate support falls at Rs 600 level, followed by Rs 580. The trend has shifted towards a bullish foot that could see immediate levels of Rs 655 and Rs 670. Medium-term outlook is well poised over the key support of Rs 500, its 100-daily moving average (DMA), as per the daily chart. The price behaviour denotes a steady rally towards Rs 700 mark.”

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One said, "The stock has seen a strong resurgence recently, letting the counter inch toward its lifetime highs. It seems poised to enter uncharted territory and continue its northward journey. For now, Rs 560 is likely to provide a cushion for any blips, while on the higher end, an authoritative surge beyond Rs 600 could strongly thrust the bullish momentum in the comparable period."

Bourses BSE and NSE have placed Adani Power shares under the long-term ASM (Additional Surveillance Measure) framework. Exchanges place stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.