Adani Green Energy shares surge 16% to hit one-year high; what's next: Rs 2,100 or 1,750?

Shares of Adani Green Energy Ltd rose sharply in Wednesday's trade to scale their one-year high level. The stock soared 15.73 per cent to hit a 52-week high price of Rs 1,991.60 against its previous close of Rs 1,720.85.

The company, which is a part of billionaire Gautam Adani's ports-to-power conglomerate, recently recorded a strong jump in its quarterly profit. Adani Green said its third-quarter (Q3 FY24) profit more than doubled from a year earlier, helped by robust power sales to customers and higher capacity utilisation.

It stated that consolidated profit rose to Rs 256 crore in the quarter ended December 31, 2023, from Rs 103 crore in the year-earlier period.

On technical setup, support on the counter could be seen around Rs 1,750. Immediate support will be near Rs 2,000. And, a decisive close above the said level is required for further upside till Rs 2,100. That said, an analyst suggested booking profit at current level.

"Support will be at Rs 1,746 and resistance at Rs 1,990. A decisive close above Rs 1,990 level may trigger a further upside till 2,100. Expected trading range will be between Rs 1,700 and Rs 2,150 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Adani Green stock price looks bullish but also overbought on daily charts with next resistance at Rs 2,088. Investors should book profits at current levels as a daily close below support of Rs 1,762 could lead to Rs 1,560 in the near term," said AR Ramachandran from Tips2trades.

"The stock may see some resistance at Rs 2,000 level in the near term. Keep stop loss placed at Rs 1,750," said DRS Finvest founder Ravi Singh.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 73.18. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a negative price-to-equity (P/E) ratio of 461.23 against a price-to-book (P/B) value of 52.42. Adani Green has a one-year beta of 1, indicating average volatility on the counter.

As of December 2023, promoters held 56.37 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

Also read: Sachin Tendulkar backed-Azad Engineering shares rally after Q3 results; stock up 86% from IPO price