Adani Green Energy shares jump 15% today; can this strong upward move continue?

Adani Green Energy Ltd shares saw a sharp rise in Monday's trade, in line with robust gains across the domestic benchmarks. The stock jumped 14.75 per cent to hit a day high of Rs 1,178 over its previous close of Rs 1,026.55.

Despite the said rise, the counter was trading 46.09 per cent lower from its one-year high price of Rs 2,185.30, a level seen earlier on January 18 this year.

For the unversed, all listed Adani Group stocks saw a massive wealth erosion following a scathing attack by US-based short seller Hindenburg Research. Some of the group's shares have regained their lost ground while a few are still in process of recovering from the said drop.

On BSE, around 8.23 lakh shares were last seen changing hands today. The figure was way more than the two-week average volume of 1.58 lakh shares.

Turnover on the counter came at Rs 92.13 crore. At this price, the company commanded a market capitalisation (m-cap) of Rs 1,78,203.65 crore. There were 2,41,555 sell orders today against buy orders of 39,586 shares.

On technical setup, support on the counter could be seen at Rs 1,050. On the higher side, resistance may be found around Rs 1,190. That said, an analyst suggested a near-term target price of Rs 1,250.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Near-term support is expected at Rs 1,050 and resistance is seen near Rs 1,185. Rs 1,050 would be ideal zone for taking a long position."

AR Ramachandran from Tips2trades said, "Adani Green looks overbought on daily charts with strong resistance at Rs 1,190. A daily close below Rs 1,099 could lead to target of Rs 973 in the near term."

DRS Finvest founder Ravi Singh said the stock may see Rs 1,250 level in the near term. Keep stop loss placed at Rs 1,050, he mentioned.

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 75.86. 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 195.68 against a price-to-book (P/B) value of 31.27.

The scrip has an analyst target price of Rs 402, Trendlyne data showed, suggesting a potential downside of 64 per cent in a year.

As of September 2023, promoters held 56.26 per cent stake in Adani Green Energy.

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

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