Shares of Adani Power turned positive in Wednesday's trade, pausing their losing run of nine straight sessions. The stock rose 5 per cent to hit a day high of Rs 182 over its previous close of Rs 173.35. On a year-to-date (YTD) basis, the counter has slumped 39.69 per cent.
Around 36.29 lakh shares changed hands today on BSE, which was higher than the two-week average volume of 20.17 lakh shares. Turnover on the counter stood at Rs 64.84 crore, commanding a market capitalisation (m-cap) of Rs 69,270.62 crore. There were 5,30,240 buy orders today against sell orders of 3,36,277 shares.
Adani Power is scheduled to report its December quarter (Q3 FY23) results later in the day. In addition, Adani Wilmar would also report its Q3 earnings today.
The stock was last seen trading lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 18.75. 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 409.11.
Adani Power has a one-year beta of 1.29, indicating high volatility on the counter.
Aamar Deo Singh, Head of Advisory at Angel One, said the stock has crucial support around the Rs 170-180 levels and resistance around the Rs 220 mark.
Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, suggested that the stock movement is now event-based and investors can take decisions at their own risk.
In another set of development, Adani Power clarified that Adani Power (Jharkhand), its wholly-owned subsidiary, has received a communication from the Bangladesh Power Development Board requesting it to consider a discount on the energy charge as per the Power Purchase Agreement.
"We would like to clarify that receipt of communication can't be a trigger for disclosure as no response has been made or any view communicated on the same. We add that no PPA amendment is under consideration," it stated.
Eight out of 10 listed Adani Group stocks traded higher on late morning deals today. Recently, Adani companies took a major hit after a US-based short seller Hindenburg Research alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.
The decision of Adani Group promoters to prepay $1.1 billion of the share-backed facility ahead of its September 2024 maturity helped a majority of the conglomerate's stocks to recover.
Also, JPMorgan's statement on Adani Group saying they are still eligible for inclusion in its influential bond indices lifted investor confidence.
Meanwhile, Indian equity benchmarks rose sharply in today's deals after the Reserve Bank of India (RBI) delivered a widely expected smaller interest rate hike of 25 basis points (bps), which took the key lending rate -- repo rate -- to 6.50 per cent.
Also read: Adani Enterprises shares rally 10%, Adani Ports 8%, Adani Power 5%; 9 out of 10 Adani group stocks gain
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