Adani Power upper circuit: On Tuesday, April 2, the share price of Adani Power reached its 5% upper circuit for the second straight session among a generally poor market. The price of Adani Power shares began 2.4% higher at ₹574.05 compared to its previous close of ₹560.35, and it quickly surged 5% to reach its upper price range of ₹588.35 on the BSE.

The statement that Mukesh Ambani's Reliance Industries was purchasing a 26% share in Gautam Adani's Madhya Pradesh power project and that the two companies were inking an agreement to use the 500 MW of energy produced by the plants for captive use caused the stock to hit its 5% upper circuit in the previous session as well.

Trends in the price of Adani Power Shares

December 6 of last year saw the stock reach its 52-week high of ₹589.30, while April 19 of the same year saw it reach its 52-week low of ₹185.10. As of right now, the stock is up around 218% from its 52-week low, trading at ₹588.35.

The stock has already had a noteworthy monthly rise of more than 10% in April.

If this pattern holds and the stock closes the month higher, it would represent a dramatic turnaround from the two months of straight losses.

In February, the price of Adani Power's shares fell by more than 2 percent, and in March, it fell by about 3 percent.

How should investors proceed?

Some investors think that at this point, they can still hold onto their shares of this stock. The founder and technical analyst of Gemstone Equity Research and ChartWizard FZE, Milan Vaishnav, CMT, MSTA, noted that the stock has been in a sideways consolidation since the company formed a high in December of last year. The stock has been trying to produce a breakthrough from this sideways consolidation zone after three months of consolidation. 

According to Vaishnav, the stock has challenged its prior high from December of last year and is still trapped in the upper circuit. In the upcoming days, there's a good possibility the stock will confirm the breakthrough. 

Vaishnav considers that although a stop loss should be in place to reduce risk, one can still be involved in the stock at this point. 

"Those who have already purchased this stock may hold onto their shares by following their stop loss up to ₹550. Vaishnav stated, "A rigorous stop loss of ₹550 should be maintained in this scenario as well. A fresh entry can also be made.