Shares of Adani Power Ltd jumped 8.38 per cent to hit an intraday high of Rs 684.90. The stock eventually settled 6.09 per cent up at Rs 670.45. At this price, it has climbed 27.63 per cent on a year-to-date (YTD) basis.
A consortium led by the company has recently completed the acquisition of Tamil Nadu-based Coastal Energen Pvt for Rs 3,330.88 crore, as per the resolution plan approved by the National Company Law Tribunal (NCLT).
As per the plan, CEPL (Completion of acquisition of Coastal Energen Pvt Ltd) has been amalgamated with special purpose vehicle, Moxie Power Generation Ltd. Consequently, CEPL stands dissolved without winding up and accordingly, the SPV will continue to exist as the surviving entity, according to a BSE filing.
Technically, support on the counter could be seen at Rs 650, followed by Rs 620 and Rs 600 levels. On the higher end, a decisive closing above Rs 700 is required for further upside.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Adani Power has been trading in a corrective phase. The stock today indicated an early sign of a possible reversal. Currently, the Rs 700 zone is likely to be pivotal and breaching this level decisively could trigger momentum in the near term. On the lower end, major support is around Rs 600."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock looked strong on daily charts and can hit an upside target of Rs 700. Keep stop loss placed at Rs 620."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 650 and resistance at Rs 700. A decisive closure above Rs 700 level may trigger a further upside towards Rs 725. The expected trading range will be between Rs 600 and Rs 725 for the short term."
The scrip traded higher than the 5-day, 10-, 150-day and 200-day simple moving averages (SMAs) but lower than the 20-day, 30-day, 50-day and 100-day SMAs. The stock's 14-day relative strength index (RSI) came at 46.28. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the stock has a price-to-equity (P/E) ratio of 18.65 against a price-to-book (P/B) value of 6.18. Earnings per share (EPS) stood at 33.89 with a return on equity (RoE) of 33.13.
Adani Power shares saw heavy trading volume on BSE today as around 10.08 lakh shares changed hands. The figure was over three times higher than the two-week average volume of 3.01 lakh shares. Turnover on the counter came at Rs 66.67 crore, commanding a market capitalisation (m-cap) of Rs 2,58,588.47 crore.