During Thursday's trading session, Adani Power Ltd.'s shares increased by almost 2%, setting new records. But following the day's first surge, the stock gave up gains and fell along with the major indexes, which were trading flat.
During the session, Adani Power's shares increased 1.84 percent to Rs 651.60, a new all-time high, commanding a total market valuation of over 2.51 lakh crore. The utilities division of the Adani Group closed Wednesday's trading session at Rs 639.80.
For the quarter that ended in March 2024, Adani Power, led by Gautam Adani, reported a 47.8% decrease in consolidated net profit on a year-over-year (YoY) basis to Rs 2,737 crore. For Q4 of FY24, the company's overall income increased by 30% to Rs 13,881.52 crore.
According to Ventura Securities, the consolidated electricity selling volume in Q4FY24 was 22.1 billion Units (BU), up 55% year over year. "This growth can be attributed to several factors including enhanced power demand, reduced import coal prices, and the expansion of installed capacity, collectively contributing to the impressive uptick in power sales" claimed the report.
After analyzing the charts, technical analysts are largely bullish on the stock and predict further gains in the counter in the next day or two. They do, however, think that following a strong run, investors should exercise caution and choose stocks based on their positions with stringent stop losses.
According to Ventura, the company's strategic advantages have allowed it to realize the full potential of the development in demand, which has resulted in a significant improvement in PLF. It has initiated development of a 2x800 MW (1600 MW) ultra-supercritical thermal power project as Phase-II expansion of its existing 600 MW capacity at Raigarh, Chhattisgarh.
Jigar S. Patel, Senior Manager of Technical Research at Anand Rathi Shares & Stock Brokers, commented on Adani Power, stating that Rs. 625 is the support level and Rs. 652 is the resistance level. "There may be further upside to 665 in response to a strong closure over the Rs. 652 barrier. For a month, the anticipated trading range is between Rs 615 and Rs 680," he stated.
After settling for more than four months, Adani Power broke out from a continuation pattern known as a bullish flag and pole formation, which was validated with a concealed bullish divergence in the RSI, according to Aditya Gaggar, Director of Progressive Shares. "A robust upswing is present when the ADX value is 32.97. The aim is Rs 800 according to the trend," he continued.
Shiju Koothupalakkal, a Technical Analysis analyst at Prabhudas Lilladher, claims that Adani Power has been growing steadily and that the business recently shown a decent retreat from the Rs 580 zone, which is a crucial 50EMA level, and is now ready to break above the previous peak of the Rs 647 zone. "A breakout confirmation shall trigger for fresh upward targets of Rs 675 and Rs 730 levels in the coming days with support maintained at Rs 585 level from current rate," he said.
"The stock has witnessed increasing EPS strength, buyers' demand, and relative strength compared to the 50 index, as the main trend has been sloping positively. We suggest purchasing Adani Power at the target price of Rs 752 with a protective stop at Rs 602 because we see minimal risk and greater profit," he stated.
According to Mehta Equities' Riyank Arora, a Technical Analyst, Adani Power has reached its significant resistance zone, which is between Rs. 642 and Rs. 647, on its daily time frame charts. "Given the state of the market and trend analysis, a retreat towards Rs 607–610 could be a strong chance for purchasing the stock. There is significant support at Rs 570. We anticipate possible objectives of Rs 700 and Rs 750 on the upside," he stated.
Disclaimer: Finance Outlook India 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.
