Shares of Adani Power touched their record high in early deals today amid a rally in the benchmark indices. The Adani Group stock climbed 3.21% to a high of Rs 647.80 against the previous close of Rs 627.65 on BSE. Market cap of the firm climbed to Rs 2.45 lakh crore in the current session. A total of 2.46 lakh shares of the firm changed hands amounting to a high turnover of Rs 16.01 crore on BSE. Adani Power stock has risen 63.44% in six months and gained 171% in a year. The Adani Group stock has a beta of 0.7, indicating very low volatility in a year.
The Adani Group’s stock is trading neither in the overbought zone nor in the oversold zone, signals the relative strength index (RSI) of Adani Power which stands at 61.4.
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.
Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has assigned a buy call to the Adani Group stock with a price target of Rs 641-661. One should fix a stop loss of Rs 580.
"We are observing that prices of Adani Power have taken a support at the 50-day SMA at Rs 575 and formed a bull candle with rising volume on the daily charts. Further, the momentum indicator RSI is positively poised. Even the stock is outperforming the benchmark indices. Combining the above parameter, it is evident that momentum on the upside may continue. Hence, one can 'buy' the stock at current levels with a stop loss of Rs 580 for targets of Rs 641 and Rs 661 levels in a couple of weeks," said Vasudeo.
Gaurav Bissa, VP, InCred Equities expects the stock to head toward the Rs 700 mark if it closes above Rs 648 on the daily charts.
"Adani Power has been in a strong multiyear uptrend with consistent formations of higher highs and higher lows on the weekly charts. It is also showing a continuation pattern with brief period of consolidation followed by a breakout resulting in a swift downside. While it has made a fresh life high, it is yet to witness a consolidation breakout. A close above Rs 648 on the daily charts will trigger a break from this pattern which can push the stock towards Rs 700 levels. RSI is currently trading near 64 levels and once it sustains above 70, the price is expected to pick up pace. A bullish macd crossover on the daily charts is likely to keep the momentum strong," said Bissa.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, "The stock looked strong on daily charts. One can consider buying it for an upside target of Rs 650. Keep stop loss placed at Rs 570."
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One is positive on the prospects of the stock. "The stock has witnessed some traction in the last couple of trading sessions, letting it inch toward its lifetime highs. The counter seems poised to enter uncharted territory and continue its northward journey once it surpasses the Rs 640 zone. For now, Rs 580-570 is likely to provide a cushion for any blips, while on the higher end, an authoritative surge beyond all-time highs could strongly thrust the bullish momentum in the comparable period, " said Krishan.