Adani Power shares fall for six straight sessions; what’s next?

Shares of Adani Power have fallen 57% from their 52-week high hit on August 22, 2022. The Adani Group stock closed at Rs 187.45 today, down 0.45% on BSE. In the current session, the stock hit an intraday low of Rs 185.10 against the previous close of Rs 188.30 on BSE. The stock has been falling for the last six sessions. A total of 2.11 lakh shares of the firm changed hands amounting to a turnover of Rs 3.95 crore on BSE. Market cap of the firm stood at Rs 72,298 crore on BSE. 

The share hit a 52 week high of Rs 432.80 on August 22, 2022 and a 52 week low of Rs 132.55 on February 28, 2023. 

In terms of technicals, the relative strength index (RSI) of Adani Power stands at 48.2, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 1.1, indicating very high volatility in a year. Shares of Adani Power are trading higher than the 50 day moving averages but lower than 5 day, 20 day, 100 day and 200 day moving averages.  

 Of late, Adani Power stock has delivered negative returns for investors due to very high market volatility and rising interest rates.  

The stock has fallen 19.36% in a year and lost 37.39% in 2023.

Meanwhile, the BSE power index clocked gains of 3.5 per cent this year but lost 24.19 percent in the last one year. In three years, the BSE power index zoomed 139.51 per cent.  

Here's a look at what analysts said about prospects of the power sector stock.

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher said,"Adani Power stock after the huge erosion since January 2023 has bottomed out near Rs 132 zone and recovered to some extent but the daily price action has narrowed down drastically making the chart technically look less significant. There is resistance witnessed near the 50EMA level of Rs 201 zone and would need a decisive move past the previous peak level of Rs 217 to indicate a breakout and establish some conviction for further upward move." 

Abhijeet from Tips2trades said, "Adani Power has a strong resistance at Rs 198 on the Daily charts. Investors should buy only if close is above this level for targets of Rs 220-235 in the coming weeks. Support will be at Rs 185."  

Aamar Deo Singh, Head Advisory, Angel One advised investors to be cautious  while taking positions in the stock.

"Adani Power stock continues to witness a free fall with the stock losing over 30% in February. Post the Hindenburg report, re-ratings and downgrades of many Adani group companies are a cause of concern for investors and with the latest news of Adani Power announcing lapse of its DB Power acquisition, brings no further solace either. Adani Power has corrected all the way from Rs 432 to currently trade around Rs 150, finding crucial support around Rs 120 levels, whereas technical resistance is seen around Rs 180. Hence, investors are advised to tread carefully till more clarity emerges," Singh said. 

 

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