Adani Power shares in consolidation mode, down 40% from record high; here's what analysts say 

Shares of Adani Power are consolidating in a broad range after falling 40% from record high. The Adani Group stock hit a record high of Rs 896.75 on June 3, 2024. The stock has a beta of 1.4, indicating very high volatility in a year. 

The stock gained 7% to Rs 554.55 on BSE. Market cap of the firm climbed to Rs 2.08 lakh crore. A total of 6.35 lakh shares of the Adani Group firm changed hands amounting to a turnover of Rs 34.38 crore on BSE.

In terms of technicals, the Adani Group stock is trading neither in the oversold nor in the overbought zone, signals the relative strength index (RSI) of Adani Power which stands at 53.2.

Adani Power stock trades higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day but lower than the 150 day and 200 day moving averages. 

Here's a look at the outlook and price targets for the stock. 

Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox is bullish on the stock. 

"The stock has triggered a fresh ‘Buy’ signal and is now trading above its 20-day, 50-day, and 100-day EMAs, all converging around Rs 515–516, indicating positive momentum. It is, however, facing resistance near its 200-day EMA at Rs 539.90. A sustained move above Rs 545 over the next few sessions could lead to a rally towards Rs 580 and potentially Rs 600. The RSI stands at 61, reflecting bullish strength without entering overbought territory, while the DMI shows positive directional bias with +DI above -DI. The bullish view will remain intact as long as the stock holds above Rs 545. However, any fall below Rs 505 would negate the current positive outlook," said Ranadive. 

Hardik Matalia, Derivative Analyst, Choice Broking said, "Adani Power is currently trading around Rs 540, consolidating in a wide trading range near a crucial demand zone after witnessing a sharp decline of nearly 50% from its previous highs. The stock has now started to show signs of a potential reversal from lower levels, signaling a shift in sentiment and a possible end to the prolonged downtrend.
The price action suggests the stock is preparing for a breakout from its consolidation range, which, if confirmed, could trigger a fresh upward leg. A sustainable move above Rs 555 would validate the breakout and open the doors for a near-term rally towards the Rs 598–Rs 600 zone. Technically, Adani Power is now trading above its short-term and medium-term EMAs and is currently hovering near its long-term EMA. Sustaining above this level will further strengthen the bullish case and suggest a trend reversal in the making." 

AR Ramachandran, a SEBI registered Independent analyst says, "Adani Power is bullish on the daily charts with strong support at Rs 522. A Daily close above resistance of Rs 555 could lead to a target of Rs 640 in the near term."