Shares of Adani Power have tanked over 26 per cent this month in a highly volatile market due to negative global cues. The Adani Group stock, which hit an all-time high of Rs 344.75 on May 30 has fallen to Rs 253.30 today, translating into a decline of 26.52 per cent in the scrip.
The fall in share of the power producer comes in line with a decline in Sensex and Nifty this month.
While Sensex is down 5.80 per cent in June, Nifty has lost 6.16 per cent during the period. However, Adani Power stock is still up 100 per cent in a year and zoomed 154.24 per cent in 2022.
In the current session, Adani Power stock touched an intraday high of Rs 258.40 , rising 4.45 per cent against the previous close of Rs 247.40 on BSE. The share opened higher at Rs 249 today.
A total of 10.15 lakh shares of the firm changed hands, amounting to a turnover of Rs 25.75 crore. Market cap of the firm rose to Rs 99,007 crore on the BSE.
Adani Power stock is trading higher than 100-day and 200-day moving averages but lower than 5-day, 20-day and 50-day moving averages. The stock hit a 52-week low of Rs 69.95 on August 24, 2021.
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With the stellar rally in Adani Power coming to an end last month, investors are in a fix whether they should buy, sell or hold the stock amid highly volatile market conditions.
Here’s a look at what analysts said about the prospects of the stock after the recent crash.
Tirthankar Das, Head of Technical Research, Ashika Group
“In comparison to the other midcap counter, the stock seems resilient though prices have breached the 23.6 per cent retracement of the entire correction rally since March 20 placed at Rs 268. Hence short-term trend might have changed to negative and next crucial support level of Rs 220 (38.2 per cent retracement) might arrest the corrective decline. On the oscillator front too, no signs of bottoming out can be seen. For investors, one should accumulate at lower levels of Rs 220.”
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Manoj Dalmia, founder and director, Proficient Equities
“Adani Power is 25 per cent down from its 52-week high. The stock is currently facing selling pressure, and is currently forming an inside bar. The stock might reach Rs 210 levels in the coming days if the selling continues. It can be bought at the support area (Rs 210) with a very small stop loss as there is a general rise in demand for power and this can benefit the stock in the near term.”
Ravi Singh, vice President and head of Research, Share India
“Adani Power is witnessing selling pressure amid the weak in overall equity market. However, the stock is showing possibility of lower level buying on technical parameters. The stock may gain momentum in near term for the target of Rs 280-Rs 300.”
Pavitraa Shetty, co-founder & trainer, Tips2Trades
┬а“As broader markets have been reeling due to the double blow of low growth with high inflation, infrastructure and power stocks have taken a beating from their all-time highs including Adani Power.Technically, Rs 238 remains an immediate support. Ideally, a dip near Rs 205- Rs 214 should be better levels to buy for the higher targets of Rs 282- Rs 320 in the coming weeks.”
