Adani Power shares zoom 27% in 2 days; company clarifies on stock price movement

Shares of Adani Power Ltd extended their gains for the second consecutive session in Wednesday's trade. The stock jumped 6 per cent to hit a day high of Rs 571.50. At this price, it has ascended by 26.96 per cent in two trading days.

BSE and NSE have sought clarification from the company on the share price movement. Adani Power, in response, said, "We would like to submit that the movement in the share volume of any company is purely due to market conditions and absolutely market driven. The management of the Company neither has any control nor has any knowledge of the reasons for the increase in volume of equity shares of the company."

The stock saw high trading volume on BSE today as 27.46 lakh shares were last seen changing hands on BSE. The figure was higher than the two-week average volume of 8.73 lakh shares. Turnover on the counter came at Rs 150.91 crore, commanding a market capitalisation (m-cap) of Rs 2,12,633.04 crore.

Technically, support on the counter could be seen in the Rs 530-514 range. Immediate resistance may be found at Rs 600.

"One can buy and hold Adani Power stock. It can hit Rs 650 level in the near term," market expert Raghvendra Singh told Business Today.

"The stock can hit an upside target of Rs 600 in the near term. Keep stop loss placed at Rs 530," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

"We anticipate a short-term opportunity in the stock with a target price of Rs 621 while maintaining a stop loss of Rs 514," said Kushal Gandhi, Technical Analyst at StoxBox.

The counter traded higher than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but lower than 100-day, 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 57.75. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 24.09 against a price-to-book (P/B) value of 5.21. Earnings per share (EPS) stood at 22.96 with a return on equity (RoE) of 21.63.

As per BSE data available on December 2024, promoters held a 74.96 per cent stake in the company.