Adani Power shares up 55% in six months; technical analysts see bearish trend

Shares of Adani Power were up in Wednesday's trade, halting their two-day fall. The stock rose 4.22 per cent to hit a day high of Rs 329.80 over its previous close of Rs 316.45. The scrip, however, gave up most of its gains as the session progressed. It was last seen trading 0.57 per cent higher at Rs 318.30. At this price, the counter has gained 54.70 per cent in the past six months.

The company is scheduled to announce its second-quarter (Q2 FY24) results on November 2, 2023. As of June quarter, promoters held a little over 70 per cent stake in Adani Power.

On technical setup, the stock largely looked 'bearish', analysts said. Support on the counter could be seen around Rs 312, followed by Rs 300.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Adani Power has been in a corrective phase in the recent period and has plunged towards the 100-EMA (Exponential Moving Average) on daily charts. Currently, the counter is placed around critical support of Rs 300-odd level, breaching which the chart structure might disrupt for the near period. On the higher end, the bearish gap of Rs 355-363 is likely to act as an immediate hurdle and a deceive surpass could only bring the momentum back in the counter."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, "The stock has been under pressure after making the top of 409. At the current juncture, it is trading near 100-DEMA, which comes around Rs 312. As we advance, support is at the said level (Rs 312), followed by 288 (which is 200-DEMA). Resistance is seen near Rs 340–350 levels."

AR Ramachandran from Tips2trades said, "Adani Power looks bearish on the daily charts with strong resistance at Rs 346. A daily close below support of Rs 312 could lead to a target of Rs 288 in the near term."

Mileen Vasudeo, Senior Technical Research Analyst at Arihant Capital Markets gave a 'Sell' call for Adani Power. "One can sell Adani Power shares at current prices. On the lower side, you can see Rs 260-280 levels in a couple of days," Vasudeo told BT TV.

DRS Finvest founder Ravi Singh, "The stock is looking weak on daily and weekly charts. The 14-day RSI (Relative Strength Index) and long term MAs are suggesting more sell-off in near term. We may see some recovery in the counter after the Q2 numbers are released. In this scenario, the counter may touch the levels of Rs 305 in coming trading sessions."

On BSE, around 6.02 lakh shares were seen changing hands today. The figure was higher than the two-week average volume of 5.38 lakh shares. Turnover on the counter came at Rs 19.49 crore, commanding a market capitalisation (m-cap) of Rs 1,23,711.32 crore. There were 2,17,089 lakh sell orders today at the time of writing this story against buy orders of 78,398 shares.

(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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