Adani Power Witnesses Steady Rise in Share Price
Adani Power’s stock price soared by 5% for the second consecutive day on Tuesday, April 2, despite a subdued market environment. Opening 2.4% higher at ₹574.05 compared to the previous day’s close of ₹560.35, the stock quickly reached its upper circuit limit of ₹588.35 on the BSE.
Key Factors Driving the Surge
The surge in Adani Power’s share price follows significant developments, including Mukesh Ambani’s Reliance Industries acquiring a 26% stake in one of Gautam Adani’s power projects in Madhya Pradesh. Additionally, a pact was signed between the two conglomerates for utilizing 500 MW of electricity from the plants for captive purposes.
Historical Performance and Current Trends
Adani Power’s stock reached its 52-week high of ₹589.30 on December 6 of the previous year, contrasting with its low of ₹185.10 recorded on April 19 of the same year. With the current market price standing at ₹588.35, the stock has surged by approximately 218% from its lowest point.
The stock has already witnessed a remarkable increase of over 10% in April alone, signaling a potential reversal from the consecutive declines observed in the preceding two months.
Expert Recommendations for Investors
Milan Vaishnav, Founder and Technical Analyst at Gemstone Equity Research and ChartWizard FZE:
Vaishnav suggests that investors can maintain their positions in Adani Power amidst the ongoing surge. He notes that after consolidating sideways for three months following a peak in December, the stock is now attempting to break out of this consolidation phase. Vaishnav advises investors to set a stop loss at ₹550 to mitigate risks.
Pravesh Gour, Senior Technical Analyst at Swastika Investmart:
Gour observes a bullish trend in Adani Power’s charts, noting a breakout from a long consolidation phase on the daily chart and a flag formation breakout on the weekly chart. He anticipates an immediate target of ₹640, with the potential for further upside towards ₹700. Gour identifies ₹500 as a key support level and highlights positive indications from MACD and RSI indicators.
Avdhut Bagkar, Derivatives and Technical Analyst at StoxBox:
Bagkar highlights the optimistic broader trend of Adani Power’s stock, emphasizing its accumulation near the 100-day moving average (DMA) and subsequent positive movements above the 50-DMA. He forecasts continued positive bias in the stock’s trajectory, with ₹518 and ₹550 serving as crucial support levels.
Disclaimer
It is important to note that the views and recommendations provided by individual analysts and experts represent their own opinions and not those of Mint. Investors are advised to seek guidance from certified experts before making any investment decisions.
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