Adani Power shares breach the key resistance level; should you buy on dips?
The Adani Group stock was trading on a flat note at Rs 542.90 on BSE. Market cap of the firm climbed to Rs 2.09 lakh crore today.
- Apr 16, 2025,
- Updated Apr 16, 2025 11:39 AM IST
Shares of Adani Power have breached the key resistance mark in the current session. According to an analyst, Adani Power shares are trading above the resistance zone of Rs 535. Amid the recent surge, the stock is witnessing bullish momentum.
Om Mehra, Technical Research Analyst, SAMCO Securities said, "Adani Power's close above the 20- and 50-day moving averages signals a shift in sentiment after months of sideways movement."
The stock's price action is supported by a steady rise in volumes, indicating renewed buying interest.
In the current session, the Adani Group stock was trading on a flat note at Rs 542.90 on BSE. Market cap of the firm climbed to Rs 2.09 lakh crore. A total of 2.22 lakh shares of the Adani Group firm changed hands amounting to a turnover of Rs 12.06 crore on BSE. The stock has a beta of 1.5, indicating very high volatility in a year.
In terms of technicals, the Adani Group stock is trading neither in the oversold nor in the overbought zone, signals the relative strength index (RSI) of Adani Power which stands at 61.2.
Adani Power stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but lower than the 150 day and 200 day moving averages.
Ravi Singh, SVP - Retail Research, Religare Broking said, "Adani Power’s daily chart reflects a bearish undertone despite the recent bounce. The stock continues to trade below its key moving average of 200-day EMA, which is sloping downward, indicating persistent long-term weakness. The price is approaching a significant resistance zone near Rs 570–580, which has historically triggered strong selling pressure towards immediate support of Rs 460-470. Multiple rejections from this zone in the past suggest that this area remains a strong supply zone. Any decisive breakout above this resistance zone could propel prices towards Rs 660 to Rs 700 in near term."
Mehra from SAMCO Securities said, "The daily RSI has moved above the 60 mark, pointing toward improving momentum without entering overbought territory, leaving room for further upside. The setup now favours a buy-on-dips strategy, with the Rs 525–Rs 540 zone emerging as an attractive accumulation area. A sustained move above Rs 550 could set the stage for a rally toward the next key Fibonacci level at Rs 610 (38.2%). The broader structure indicates scope for a gradual upward drift. The horizontal trendline breakout, strengthening RSI, and the reclaiming of key moving averages, the stock appears well-positioned for short-to medium-term gains."
Ventura Securities has a buy call on Adani Power stock with a target price of Rs 806.
"Rising demand for power and enhanced coal availability have lifted APL’s average Plant Load Factor (PLF) to 72% in the first half of FY25, which has positively impacted its revenue and profitability. In FY24, the company experienced impressive growth, with revenue and EBITDA increasing by 29.9% and 81%, respectively. Looking ahead, APL aims to reach a capacity of 30.67 GW by FY31 and anticipates revenue and EBITDA growth at CAGRs of 11.8% and 10.6%, respectively, from FY24 to FY27," said the brokerage.
Shares of Adani Power have breached the key resistance mark in the current session. According to an analyst, Adani Power shares are trading above the resistance zone of Rs 535. Amid the recent surge, the stock is witnessing bullish momentum.
Om Mehra, Technical Research Analyst, SAMCO Securities said, "Adani Power's close above the 20- and 50-day moving averages signals a shift in sentiment after months of sideways movement."
The stock's price action is supported by a steady rise in volumes, indicating renewed buying interest.
In the current session, the Adani Group stock was trading on a flat note at Rs 542.90 on BSE. Market cap of the firm climbed to Rs 2.09 lakh crore. A total of 2.22 lakh shares of the Adani Group firm changed hands amounting to a turnover of Rs 12.06 crore on BSE. The stock has a beta of 1.5, indicating very high volatility in a year.
In terms of technicals, the Adani Group stock is trading neither in the oversold nor in the overbought zone, signals the relative strength index (RSI) of Adani Power which stands at 61.2.
Adani Power stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but lower than the 150 day and 200 day moving averages.
Ravi Singh, SVP - Retail Research, Religare Broking said, "Adani Power’s daily chart reflects a bearish undertone despite the recent bounce. The stock continues to trade below its key moving average of 200-day EMA, which is sloping downward, indicating persistent long-term weakness. The price is approaching a significant resistance zone near Rs 570–580, which has historically triggered strong selling pressure towards immediate support of Rs 460-470. Multiple rejections from this zone in the past suggest that this area remains a strong supply zone. Any decisive breakout above this resistance zone could propel prices towards Rs 660 to Rs 700 in near term."
Mehra from SAMCO Securities said, "The daily RSI has moved above the 60 mark, pointing toward improving momentum without entering overbought territory, leaving room for further upside. The setup now favours a buy-on-dips strategy, with the Rs 525–Rs 540 zone emerging as an attractive accumulation area. A sustained move above Rs 550 could set the stage for a rally toward the next key Fibonacci level at Rs 610 (38.2%). The broader structure indicates scope for a gradual upward drift. The horizontal trendline breakout, strengthening RSI, and the reclaiming of key moving averages, the stock appears well-positioned for short-to medium-term gains."
Ventura Securities has a buy call on Adani Power stock with a target price of Rs 806.
"Rising demand for power and enhanced coal availability have lifted APL’s average Plant Load Factor (PLF) to 72% in the first half of FY25, which has positively impacted its revenue and profitability. In FY24, the company experienced impressive growth, with revenue and EBITDA increasing by 29.9% and 81%, respectively. Looking ahead, APL aims to reach a capacity of 30.67 GW by FY31 and anticipates revenue and EBITDA growth at CAGRs of 11.8% and 10.6%, respectively, from FY24 to FY27," said the brokerage.