Adani Power shares in focus today as Adani Group firm inks pact with MPSEZ Utilities

Shares of Adani Power are in focus today after the Adani Group firm said it has inked an agreement with MPSEZ Utilities Limited (MUL) for power supply. Adani Power stock climbed 1.75% to Rs 199.70 against the previous close of Rs 196.25 on BSE. A total of 2.08 lakh shares of the firm changed hands amounting to a turnover of Rs 4.13 crore on BSE. Market cap of the firm rose to Rs 75,981 crore on BSE.

The share hit a 52 week high of Rs 432.80on August 22, 2022 and a 52 week low of Rs 132.55 on February 28, 2023. Considering the current market price, the stock has lost 54.39 per cent from the yearly high.

In terms of technicals, the relative strength index (RSI) of Adani Power stands at 47.4, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 1.2, indicating very high volatility in a year. Shares of Adani Power are trading higher than the 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.

In a regulatory filing, Adani Power said the power supply agreement is for 15 years.

"Adani Power has entered into a long-term power supply agreement (PSA) with MUL for 360 MW capacity to be supplied from its 4,620 MW power plant at Mundra, Gujarat, for 15 years," it said.

Of late, Adani Power stock has delivered negative returns for investors due to very high market volatility and rising interest rates. The stock has fallen 20.51% in a year and lost 34.45% in 2023.

Meanwhile, the BSE power index clocked gains of 4.23 per cent this year but lost 24.28 percent in the last one year. In three years, the BSE power index zoomed 144.35 per cent.

Here's a look at what analysts said about prospects of the power sector stock.

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher said,"Adani Power stock after the huge erosion since January 2023 has bottomed out near Rs 132 zone and recovered to some extent but the daily price action has narrowed down drastically making the chart technically look less significant. There is resistance witnessed near the 50EMA level of Rs 201 zone and would need a decisive move past the previous peak level of Rs 217 to indicate a breakout and establish some conviction for further upward move."

Abhijeet from Tips2trades said, "Adani Power has a strong resistance at Rs 198 on the Daily charts. Investors should buy only if close is above this level for targets of Rs 220-235 in the coming weeks. Support will be at Rs 185."