Shares of Adani Power Ltd delivered zero returns to investors in 2024. The Adani Group stock gained just 0.58% in 2024 and rose 0.67% in a year. The nearly nil returns in the multibagger power sector stock can be attributed to a 26.43% correction in the last six months. In fact, in the short term, Adani Power shares could not fetch more than 6% returns logged in the one week.
The Adani Group stock was trading 2.29% lower at Rs 527.35 on Tuesday against the previous close of Rs 539.70. The multibagger stock has gained 429% in three years and risen 755% in five years. Its one year beta of 1.5 signals high volatility in a year.
Market cap of the firm slipped to Rs 2.03 lakh crore. A total of 3.95 lakh shares of the firm changed hands amounting to a turnover of Rs 20.88 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 54.
The Adani Group stock is trading higher than the 10 day, 20 day, 30 day but lower than the 50 day, 100 day, 150 day and 200 day moving averages.
Analysts have mixed views on the prospects of the stock. Kushal Gandhi, Technical Analyst at StoxBox is bearish on the Adani Group stock.
"The price action of Adani Power continues to face sustained selling pressure, despite a modest recovery observed in late November after a considerable decline of 52 per cent from its record high of Rs 895. The stock is trading below key moving averages, including the 50 and 200 DMA, accompanied by a negative crossover of these averages, which indicates a bearish trend with diminishing momentum. These moving averages serve as strong resistance levels, while the shorter-term moving averages act as immediate supply zones, preventing any significant recovery. This situation has resulted in a notable deterioration in earnings per share, price strength, and overall buyer demand. Therefore, we advise against purchasing Adani Power stock," said Gandhi.
Mandar Bhojane, Research analyst, Choice Broking said, "Adani Power is currently trading at Rs 525.45, consolidating just below a falling trendline on the daily chart. This setup suggests the stock is on the verge of a potential breakout. A surge in trading volumes indicates strong buying interest, signaling momentum may favor the bulls. The price trading above the 20 EMA further supports the bullish outlook, hinting at sustained upward movement if the breakout materializes. Technical indicators add to the optimism. The RSI, currently at 49.6, is trending upwards, reflecting improving bullish sentiment. Additionally, the Stochastic RSI has shown a positive crossover from the oversold region, further confirming the possibility of upward momentum. A decisive close above ?560 could unlock short-term targets of Rs 620 and Rs 640, making it a level to watch closely. On the downside, immediate support is visible at Rs 515, presenting a strategic entry point for traders looking to buy on dips. To manage risks effectively, a stop-loss at Rs 490 is recommended to guard against sudden reversals. Overall, Adani Power’s technical setup indicates a strong potential for a bullish breakout in the near term, with favorable risk-to-reward dynamics."
A R Ramachandran, SEBI registered Independent analyst says, "Adani Power stock price is bullish on the Daily charts with strong support at Rs 495.6. A Daily close above resistance of Rs 562 could lead to a target of Rs 640 in the near term."