On Thursday, the stock closed at Rs 512.05, up 0.56 percent. At this pricing, it has increased by 71.74 percent year-to-date (YTD) and 99.40 percent over the last six months.
Adani Power Ltd.’s shares have increased by almost 100% within the past six months. On Thursday, the stock closed at Rs 512.05, up 0.56 percent. At this pricing, it has increased by 71.74 percent year-to-date (YTD) and 99.40 percent over the last six months. Nonetheless, the counter has decreased 13.11% from its all-time high of Rs 589.30, which was reached on December 6 of this year.
Bourses Adani Power’s securities are now covered by the long-term ASM (Additional Surveillance Measure) framework, thanks to the BSE and NSE. Exchanges warn investors of high share price volatility by placing equities in either short-term or long-term ASM frameworks.
According to the setup, most analysts predicted that the stock would encounter resistance in the region above Rs 530. The counter showed support at the levels of Rs 485 and Rs 460.
Anand Rathi Shares and Stock Brokers’ senior manager of technical research analyst, Jigar S. Patel, stated: “Rs 460 and Rs 530 will be the support and resistance levels, respectively. For a month, the anticipated trading range is between Rs 430 and Rs 550.”
“Adani Power is bearish on daily charts with strong resistance at Rs 548,” stated AR Ramachandran of Tips2trades. The short-term goal of Rs 410 might be reached if the daily close falls below the support level of Rs 485.”
The stock was last spotted trading below the 5-day and 10-day simple moving averages (SMAs), but above the 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs. The 14-day relative strength index (RSI) for the stock was 59.54. A value less than 30 is considered oversold, while a value more than 70 is considered overbought. The stock of the company has a price-to-equity (P/E) ratio of 10.10 and a price-to-book (P/B) value of 5.14.
Today, over 4.59 lakh shares were traded on the BSE. The volume was below than the two-week average of 7.49 lakh shares. The counter’s turnover was Rs 23.03 crore, with a market capitalisation (m-cap) of Rs 1,97,494.56 crore.
Promoters owned 70.02 percent of the power company as of the third quarter.
Advantages:
Robust year-to-date and six-month growth: The stock has risen by more than 70% year-to-date and almost 100% over the last six months, a sign of a bull market.
Positive consensus among experts: The majority of analysts see possibilities for additional higher movement and a trading range of Rs 430 to Rs 550 in the foreseeable future.
Technical indications that are in good shape: the stock has an RSI below 70, which indicates that it is not yet overbought, even though it is slightly below its short-term moving averages. It is also above longer-term averages.
Good ratios of P/E and P/B: Given its profits and book value, the company does not appear to be overvalued, as indicated by the P/E ratio of 10.10 and the P/B ratio of 5.14.
Drawbacks:
Decline from all-time high: As of right now, the stock is 13% below its December all-time high of Rs 589.30.
Placed under ASM surveillance: The stock price may be volatile if it is subject to the ASM framework.
Remarks from analysts: A few analysts point to negative trends on the daily chart and possible declines if the price breaks below the Rs 485 support level.
Volume below normal: The trading volume for today was below the two-week average, which can be a sign of slowing momentum.
(Disclaimer: Business Today does not offer investment advice; the news it offers on the stock market is for informative purposes only. Before deciding what to buy, readers are advised to speak with a licensed financial counselor.)
