Adani Power shares up 25% in 7 sessions; what's next: Rs 360 or Rs 430?

Shares of Adani Power Ltd on Friday extended their gains for the seventh straight session. The stock rose 4.49 per cent to hit a day high of Rs 389.50. At this price, it has gained 24.58 per cent in seven sessions when compared to a closing of Rs 312.65 on October 25, 2023. Despite the said rise, it was down 5 per cent from its 52-week high of Rs 410, a level seen on September 12 this year.

Technical analysts largely remained divided on the stock. One of them said a breakout above Rs 400 would be required to further push the up move while another analyst suggested that the stock looked 'bearish'. An analyst also believes Adani Power may see Rs 430 level in the near term.

Support on the counter could be seen at Rs 375, followed by Rs 360, Rs 355 and Rs 350 levels. On the higher side, resistance may be seen around Rs 400-410 levels.

"Adani Power has seen a strong resurgence from the lows of Rs 310-odd levels in the last couple of trading weeks and is currently hovering near the immediate swing high of Rs 400 level. For now, a breakthrough above Rs 400 could further accelerate momentum. While on the downside, strong support can be seen around Rs 360-355," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Rs 400-410 would act as stiff resistance. Support would be seen near Rs 360-350 levels," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Despite positive Q2 FY24 results, Adani Power looks slightly bearish on daily charts with strong resistance at Rs 389. A daily close below support of Rs 375 could lead to target of Rs 345 in the near term," said AR Ramachandran from Tips2trades.

DRS Finvest founder Ravi Singh said the stock may touch Rs 430 in the near term. Keep stop loss placed at Rs 375, Singh added.

Adani Power Ltd posted a stellar set of numbers for the second-quarter of the ongoing financial year 2023-24 (Q2 FY24). The company's consolidated net profit in the September quarter came at Rs 6,594 crore, up 847.41 per cent from Rs 696 crore in the year-ago period.

Revenue from operations in Q2 FY24 rose to Rs 12,991 crore, an 84.43 per cent jump from Rs 7,044 crore in the corresponding period last year.

During Q2 FY24, the company and its subsidiaries achieved an average Plant Load Factor (PLF) of 58.3 per cent and power sales volume of 18.1 billion units, as compared to PLF of 39.2 per cent and power sales volume of 11 billion units in Q2 FY23.

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 should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

Also read: Arvind Fashions shares rise on sale of beauty venture to Reliance Retail