Adani Power shares fall 9% from 52-week high; what lies ahead?

Shares of Adani Power Ltd slipped 9% intraday from 52-week high in today’s session. Adani Power stock touched a 52-week high of Rs 410 on BSE in the current session. Later, the stock fell 9% to Rs 373.10 from its yearly high. The stock of the Adani Group firm ended 3.10% lower at Rs 386.15 on BSE.  

Market cap of the firm fell to Rs 1.48 lakh crore. The firm saw 33.59 lakh shares changing hands amounting to a turnover of Rs  130.90 crore on BSE.   

The share fell to a 52-week low of Rs 132.55 on  February 28, 2023.  

In terms of technicals, the relative strength index (RSI) of Adani Power stands at 80.4, signaling it's trading in the overbought zone. The stock has a beta of 1.4, indicating high volatility in a year. Adani Power shares stand higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. 

Adani Power shares have lost 2.90% in a year and risen 29.52% in 2023. However, the stock has zoomed 932.4% in three years.   

Here’s a look at what experts said on the technical outlook of the stock.  

Abhijeet from Tips2trades said, "Adani Power stock price is bullish but also extremely overbought on the daily charts with next resistance at Rs 415. Investors should book profits at current levels as a close below support of Rs 393 could lead to Rs 358 in the near term." 

Riches Vanara, Technical and Derivative Analyst at StoxBox is bullish on the stock with a  target price of Rs 372-386. One can fix the stop loss at Rs 348.  

“Adani Power is showing a good momentum and making higher highs for the last six days. The volume activity has picked up nicely and is trading above average. A clean breakout is also seen on the relative strength chart in comparison to Nifty, which is a bullish sign. One can buy this stock for targets of Rs 372 and Rs 386, respectively with a stop loss placed below Rs 348,” said Vanara.  

Adani Power reported a 83.25 percent rise in consolidated net profit for the quarter ended June 2023 at Rs 8,759.42 crore against Rs 4,779.86 crore reported in the June quarter of last fiscal, led by massive other income.  However, revenue from operations slipped to Rs 11,005.54 crore, down 19.80 percent from Rs 13,723.06 crore during the corresponding quarter of last fiscal.  

Other income zoomed to Rs 7,103.47 crore and included one-time recognition of prior period regulatory revenue amounting to Rs 6,497 crore, primarily on account of late payment surcharge. 

Disclaimer: This article is for informational purpose only. Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today. Please consult your financial advisor or a qualified stock market expert before taking any position in the mentioned stock or stocks. Business Today will not be responsible for losses arising from trading or investing in these stocks.       

 

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