Produced by: Aseem Thapliyal
Shares of Adani Power Ltd fell after five sessions on Friday amid weakness in the benchmark indices. The Adani Group stock fell up to 3.73% to Rs 618.15 against the previous close of Rs 642.15.
However, due to the five-day rally, the stock is trading in the overbought zone, signals the relative strength index (RSI) of Adani Power which stands at 74.6. An RSI value above 70 denote stock is in overbought zone and below 30 indicates that the stock is in oversold zone.
The Adani Group stock is trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages signaling the stock is trading in bullish zone. The Adani Group stock has a beta of 0.8, indicating very low volatility in a year.
A total of 5.52 lakh shares of the firm changed hands amounting to a high turnover of Rs 34.65 crore on BSE in the current trading session. Market cap of the firm fell to Rs 2.42 lakh crore.
Adani Power stock has risen 71% in six months and gained 230% in a year. However, BSE and NSE have placed the stock under stage 2 of Long Term Additional Surveillance Measure (ASM) Framework
Aditya Gaggar, Director of Progressive Shares said, "After consolidating for over 4 months, the stock has given a breakout from a continuation pattern known as a bullish Flag and Pole formation confirmed with a hidden bullish divergence in the RSI. A reading of 32.97 in ADX indicates the presence of a strong uptrend. As per the pattern, the target is Rs 800."
Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "After the consolidation period, the stock has entered a new territory with fresh higher targets of Rs 670 and Rs 735 levels in the coming days. The Rs 590 level would be the major support zone from current levels."
Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox said, “Post forming a sideways consolidation, the price action has triggered the upward breakout over Rs 600-mark. This move is signaling a positive upside for the upcoming sessions. Immediate support falls at Rs 600 level, followed by Rs 580. The trend has shifted towards a bullish foot that could see immediate levels of Rs 655 and Rs 670. The price behaviour denotes a steady rally towards Rs 700 mark.”
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