Shares of Adani Power fell for the eight straight session today amid a rout in the Adani Group stocks, triggered by allegations from Hindenburg Research related to accounting frauds, stock manipulations and money laundering. In the last eight sessions, shares of Adani Power have crashed 33.61 per cent to Rs 182.45 amid negative sentiment in the broader market today. The stock ended at Rs 274.8 on January 24, a day before the market took into account the weak sentiment arising out of Hindenburg report.
Interestingly, Adani Power stock was among the top multibaggers of 2022,rising over 200% during the period.
Check share price live: Adani Power
However, this year the stock has lost 39.06% and fallen 35% in a month.
In the current trading session, the stock was stuck in the lower circuit of 5% at Rs 182.45 in afternoon trade. The stock opened with a loss of 5% today. Market cap of the firm fell to Rs 70,369 crore. Later, the stock ended 5% lower on BSE.
In terms of technicals, the relative strength index (RSI) of the firm stands at 14.9, signaling the stock is trading in highly oversold territory. Adani Power stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. It has a beta of 1.3, indicating high volatility in the last year.
In the September quarter of this fiscal, the Adani Group firm reported a 401.6% rise in consolidated profit after tax (PAT) at Rs 695.53 crore compared with Rs 230.6 crore loss in the corresponding quarter last year. Consolidated revenue in Q2 rose 36 per cent year-on-year (YoY) to Rs 7,044 crore on improved tariff realisation and higher one-time income of Rs 771 crore. In the June quarter, it reported revenue of Rs 13,723 crore.
Here’s a look at what analysts said about the outlook of the Adani Power stock.
Abhijeet from Tips2trade said,” Rs 212 will be a strong resistance for Adani Power on the Daily charts. Investors can buy in small quantities only if close is above mentioned resistance. Next supports will be at Rs 174.6 & Rs 161.5 on the Daily charts.”
Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher said, “The stock has eroded drastically in the last 5 months with the selling pressure intensifying in the last 2-3 weeks and with a series of lower circuits visible on the daily chart, technically the chart pattern has turned out to be erratic. In spite of being one of the cheapest Adani stocks, this stock movement is now event based and traders and investors can take decision at their own risks.”
Ajit Mishra, VP – Technical Research, Religare Broking said, “While select stocks from the Adani group are witnessing some recovery after a sharp sell-off, we feel it’s prudent to avoid fresh exposure until the pack stabilises. For Adani Power, the tone is still negative so traders should refrain from taking any positions. On the downside, 140-155 zone could offer some support.”
Aamar Deo Singh, head, Advisory, Angel One said, “Adani Group stocks have been hammered significantly, post the release of the Hindenburg report, and even today, the stocks are in sell-off mode. It is best advisable to stay away for sometime, till we see the stocks consolidating, and the negative news flows abating. Adani Power is also in a clear downtrend, having crucial support around the Rs 170-180 mark, & resistance around the Rs 220 mark, stock having losing almost 40% this year alone.”
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