Shares of Adani Power have gained 199% from their 52 week low in almost a year. The Adani Group stock, which fell to a 52-week low of Rs 214 on May 19, 2023 ended at Rs 640 on BSE in the current session. On similar lines, the multibagger stock has gained 171% in a year. The stellar rise in the Adani Power stock has been accompanied by low volatility in a year, signals its one year beta of 0.6. Adani Power shares clocked multibagger returns of 567% and 1488% in three years and five years, respectively.
In the current session, the Adani Group stock climbed to a record high of Rs 651.60 against the previous close of Rs 639.80 on BSE. Market cap of the firm rose to Rs 2.46 lakh crore. Later, the stock closed flat at Rs 639.95 on BSE. A total of 5.78 lakh shares of the firm changed hands amounting to a turnover of Rs 37 crore on BSE.
In terms of technicals, the Adani Group 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 64.2.
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.
Aditya Gaggar, Director of Progressive Shares is bullish on the Adani Group stock.
“After consolidating for over four months, the stock has given a breakout from a continuation pattern known as a bullish Flag and Pole formation confirmed with a hidden bullish divergence in the RSI. A reading of 32.97 in ADX indicates the presence of a strong uptrend. As per the pattern, the target is Rs 800," said Gaggar.
Samco Securities believes it's a buy on dip stock and has an accumulate stance on the scrip.
"India's peak electricity demand is projected to reach 260 GW this summer, primarily driven by thermal power. As electricity consumption continues to rise, companies like Adani Power and other power producers are expected to ramp up generation to meet this high demand. Consequently, expanding thermal power capacity will be essential, benefiting Adani Power significantly. We believe Adani Power is still available at reasonable valuations. Investors may consider accumulating the stock during any price corrections," the brokerage said.
Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi has a target of Rs 700 on the stock.
"On the weekly chart, the stock has formed a bullish doji star pattern, and on the other technical parameter, the RSI is also trending upwards, so this setup is bullish in nature for this stock, so traders can buy on dip with a stop loss of 575 for the target price of 700," said Dongre.
Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher said, "The stock has been in a gradual uptrend with recently giving a decent pullback from Rs 580 zone of the significant 50EMA level and currently is on the verge of a breakout above the previous peak of Rs 647 zone. A breakout confirmation shall trigger for fresh upward targets of Rs 675 and Rs 730 levels in the coming days with support maintained at Rs 585 level from current rate."
Gaurav Bissa, VP, InCred Equities said, "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."