Adani Power shares up 87% from one-year low levels; should you buy, sell or hold?

Shares of Adani Power Ltd have slipped 16.69 per cent on a year-to-date (YTD) basis. The stock has declined 42.61 per cent from its one-year high level of Rs 432.80, hit on August 22 last year. On Monday, it settled 0.62 per cent lower at Rs 248.40. The steep fall recorded earlier this year was due to the scathing allegations made by US-based short seller Hindenburg Research, which the Adani Group has denied. All the stocks from the Adani stable, including Adani Power, then staged a sharp rebound after a series of investments (three) by US-based firm GQG Partners.

The counter has recovered 87.40 per cent from its 52-week low price of Rs 132.55, a level seen on February 28, 2023.

On technical setup, support on the counter could be seen at Rs 231 levels. One of the analysts said it may hit Rs 270 levels in the near term, while another suggested that a daily close above the resistance level of Rs 258 is required for higher targets. One more analyst recommended that traders, who are already invested in the stock, should keep a stop loss placed at Rs 230.

AR Ramachandran from Tips2trades said, "Adani Power has strong support at Rs 231. A daily close above resistance of Rs 258 could lead to target of Rs 283 in the near term."

Ravi Singh, Vice-President and Head of Research at Share India, said, "Adani Power has successfully started commercial operations at its thermal power plant in Jharkhand's Godda district. The stock may touch Rs 270 levels in coming trading sessions."

VLA Ambala, Research Analyst at Stock Market Today, said, "Those who are already invested in this stock can wait, keeping a a strict stop loss at Rs 230 for targets between Rs 270 and Rs 350."

Around 5.58 lakh shares changed hands today on BSE, which was lower than the two-week average volume of 7.79 shares. Turnover on the counter came at Rs 13.93 crore, commanding a market capitalisation (m-cap) of Rs 95,806.36 crore.

The counter's 14-day relative strength index (RSI) came at 44.82. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 20.57. It has a price-to-book (P/B) value of 3.39.

The scrip has a one-year beta of 1,09, indicating high volatility.

Meanwhile, Indian equity benchmarks extended their record run today, led by gains in metals, banks, financials, consumer goods and energy stocks. The 30-share BSE Sensex pack jumped 486 points or 0.75 per cent to scale its fresh record closing level of 65,205; while the broader NSE Nifty index moved 134 points or 0.70 per cent higher to settle at a new peak of 19,323.

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