Adani Green Energy shares extend sharp gains, zoom 19% today; time to book profit?

Adani Green Energy Ltd shares continued their strong upward move for the third straight session in Wednesday's trade. The stock soared 19.11 per cent to hit a day high of Rs 1,605.65. At this price, the scrip has gained 56.41 per cent in three days. Despite the said rise, the counter was down 26.53 per cent from its one-year high of Rs 2,185.30, a level seen earlier on January 18 this year.

The company said it has received a follow-on funding of $1.36 billion via a green loan from an international bank consortium to help the company expand its renewable power capacity. This brings Adani Green's total funds in its construction asset portfolio to $3 billion.

The new loan will be used to develop a renewable energy project at Khavda in Gujarat, the company said.

Also read: Adani Green Energy shares surge 7% as Adani firm seals $1.36 billion funding

Separately, all listed Adani Group stock -- including Adani Green -- have logged decent gains after it was reported that the US government found short-seller Hindenburg Research's allegations of corporate fraud against Indian billionaire Gautam Adani "irrelevant".

(Access real-time and historical data on market cap of Adani Group companies at BT500)

On technical setup, support on the counter could be seen around Rs 1,450. On the higher side, immediate resistance may be found above the Rs 1,700 zone. Investors should book profit at current levels, one of the analysts said.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "For Adani Green Energy, support will be at Rs 1,450 and resistance may be seen around Rs 1,650. Expected trading range could be between Rs 1,335 and Rs 1,750 for next couple of months."

Also read: Hot stocks on December 6: Adani Power, Suzlon Energy, Tata Power, Balaji Amines and more

AR Ramachandran from Tips2trades said, "Adani Green looks bullish and extremely overbought on daily charts with next resistance now at Rs 1,706. Investors should book profits at current levels as a daily close below support of Rs 1,463 could lead to a target of Rs 1,200 in the near term."

DRS Finvest founder Ravi Singh suggested that one can buy the stock for a target price of Rs 1,800, keeping a stop loss placed at Rs 1,450.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 90.58. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a negative price-to-equity (P/E) ratio of 256.95 against a price-to-book (P/B) value of 41.06. The scrip has a one-year beta of 1.3, indicating high volatility.

As of September 2023 quarter, promoters held 56.26 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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