Adani Power shares slip 8% in a month; what's next for this multibagger on technical charts?

Shares of Adani Power Ltd were trading lower in Monday's trade. The stock was last seen trading 1.26 per cent down at Rs 524.70. At this price, it has declined 7.60 per cent in the past one month. Despite the mentioned fall, the multibagger counter has gained 175.72 per cent in a year.

Today, the Supreme Court of India refused to entertain Adani Power's application seeking a late payment surcharge of around Rs 1,300 crore from Rajasthan distribution companies (discoms).

Separately, all listed Adani stocks were trading in the red today over reports that the US is probing the Indian conglomerate and its founder Gautam Adani over potential bribery.

Bourses BSE and NSE have put the securities of Adani Power under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

DRS Finvest founder Ravi Singh said, "One can buy the stock around Rs 500 level for a target price of Rs 550. Keep stop loss placed at Rs 480."

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Resistance will be at the Rs 565-570 zone. Keep stop loss at Rs 515 with strong risk management."

The counter was trading lower than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but higher than the 100-day, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 37.60. A level below 30 is defined as oversold while a value above 70 is considered overbought.

On BSE, around 2.90 lakh shares were seen changing hands today. The figure was higher than the two-week average volume of 1.13 lakh shares. Turnover on the counter came at Rs 15.05 crore, commanding a market capitalisation (m-cap) of Rs 2,02,354.30 crore.