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Adani Power shares on Wednesday continued their strong upward run for the fourth straight session. The stock jumped 5% to hit its upper price band of Rs 617.75. At this price, it has soared 19.59% in four trading days.
The counter has given multibagger returns by rallying more than 220% in the past one year. It has gained around 66% in six months.
The counter has gained traction following Adani Power's announcement on Mukesh Ambani-led Reliance Industries Ltd (RIL) picking up a 26% stake in a Madhya Pradesh power project of Gautam Adani. "Mahan Energen Ltd, wholly-owned subsidiary of Adani Power, has entered into a 20-year long-term Power Purchase Agreement for 500 MW with RIL, under the captive user policy as defined under the Electricity Rules, 2005," it stated.
On BSE, around 6.79 lakh shares were seen changing hands today. The figure was lower than the two-week average volume of 10.65 lakh shares. Turnover on the counter came at Rs 41.33 crore, commanding a market capitalisation (m-cap) of Rs 2,38,262.40 crore.
Technical analysts largely remained positive on the stock. Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One suggested a further bullish momentum for Adani Power. Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "One can expect a fresh upward move for next targets of Rs 625 and Rs 670."
Ventura Securities has initiated coverage on the private thermal power producer this year with a target price of Rs 707 per share.
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.
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