Adani Power shares up nearly 100% in six months; can stock revisit 52-week high?

Shares of Adani Power Ltd have zoomed around 100 per cent in the last six months. The stock settled with 0.56 per cent gains at Rs 512.05 on Thursday. At this price, it has gained 99.40 per cent during the past six-month period and 71.74 per cent on a year-to-date (YTD) basis. Although, the counter has slipped 13.11 per cent from its one-year high of Rs 589.30, a level seen earlier this month on December 6.

Bourses BSE and NSE have put the securities of Adani Power under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

On technical setup, analysts largely suggested that the stock may see resistance the above Rs 530 zone. Support on the counter could be seen at Rs 485, followed by Rs 460 level.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 460 and resistance at Rs 530. Expected trading range will be between Rs 430 and Rs 550 for a month."

AR Ramachandran from Tips2trades said, "Adani Power is bearish on daily charts with strong resistance at Rs 548. A daily close below support of Rs 485 could lead to target of Rs 410 in the near term."

The counter was last seen trading lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-, 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 59.54. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 10.10 against a price-to-book (P/B) value of 5.14.

On BSE, around 4.59 lakh shares changed hands today. The figure was lower than the two-week average volume of 7.49 lakh shares. Turnover on the counter came at Rs 23.03 crore, commanding a market capitalisation (m-cap) of Rs 1,97,494.56 crore.

As of September quarter, promoters held 70.02 per cent stake in the power firm.

(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.)

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