Adani Power shares slip 6%; is fresh buying advised at current levels?

Shares of Adani Power Ltd slipped in Tuesday's trade after a sharp rally in recent sessions. The stock fell 5.85 per cent to hit a day's low of Rs 160.20 before recovering partially to trade 3.20 per cent lower at Rs 164.70. Despite the fall, the counter has advanced 36.03 per cent in a month and 56.59 per cent so far this year.

The decline came after US-based GQG Partners LLC trimmed its holding in Adani Power by about 1 per cent in a $250 million deal last week, Bloomberg reported citing sources. The move suggested fund manager Rajiv Jain was booking some profits in one of his strongest Adani Group bets. SBI Funds Management Ltd and Citadel Securities LLC were among the buyers of the shares offloaded by long-time backer GQG Partners, the report added.

The stake sale preceded Adani Power's one-to-five stock split corporate action, which recently came into effect.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Adani Power's stock has been in momentum after the recent Sebi news and also the power stocks have been doing well. Investors with a high-risk appetite can continue to hold their positions while fresh buying is not advised at this price range."

Echoing a cautious stance, Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "The stock has recently witnessed a spurt in price and volume, indicating a robust near-term outlook. The support is visible around Rs 160–155, followed by Rs 145. While on the higher end, Rs 180 is likely to be seen as an intermediate hurdle. It is advisable to trail profits with revised stop losses till momentum persists in the counter."

Separately, Adani Group shares have seen strong traction in the last few days following the Securities and Exchange Board of India’s (Sebi’s) dismissal of allegations of stock manipulation raised by US-based short-seller Hindenburg Research.