Adani Power Shares Surge 27% in Two Days; Company Responds to Stock Price Movement

Adani Power Ltd has witnessed a significant jump in its stock price, with shares soaring by 6% during Wednesday's trading session, reaching a high of Rs 571.50. This surge in value has translated to an impressive 26.96% rise over the past two trading days.

Despite this dramatic rise, both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have reached out to the company for clarification regarding the rapid movement in the stock price. In response, Adani Power issued a statement, emphasizing that the fluctuations in the share volume were entirely driven by market conditions. The company further clarified that its management neither has control nor insight into the reasons behind the surge in equity share volumes.

High Trading Volume and Market Capitalization

The stock experienced heightened trading activity on the BSE, where a total of 27.46 lakh shares exchanged hands. This volume significantly outpaced the two-week average of 8.73 lakh shares. The turnover on this counter stood at Rs 150.91 crore, contributing to the company's overall market capitalization of Rs 2,12,633.04 crore.

Technical Analysis: What's Next for Adani Power Shares?

From a technical perspective, analysts suggest support levels for the stock could be found between Rs 530 and Rs 514, while the immediate resistance level may be around Rs 600.

Market expert Raghvendra Singh commented, "Adani Power stock remains a good buy. It has the potential to reach Rs 650 in the near future."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, also expressed optimism, predicting a target of Rs 600 for the stock. He recommended placing a stop loss at Rs 530 for risk management.

Kushal Gandhi, Technical Analyst at StoxBox, identified a short-term opportunity in Adani Power with a target price of Rs 621, maintaining a stop loss of Rs 514.

Stock Indicators and Financial Ratios

Technically, Adani Power's stock price is currently trading above its 5-day, 10-day, 20-day, 30-day, and 50-day simple moving averages (SMAs), but it remains below the 100-day, 150-day, and 200-day SMAs. The stock's 14-day relative strength index (RSI) stands at 57.75, indicating a neutral position—neither overbought nor oversold, with levels above 70 considered overbought and below 30 as oversold.

In terms of financials, Adani Power boasts a price-to-earnings (P/E) ratio of 24.09, along with a price-to-book (P/B) value of 5.21. The company's earnings per share (EPS) is 22.96, and its return on equity (RoE) stands at 21.63.

Promoter Stake and Ownership

As per BSE data from December 2024, promoters hold a significant 74.96% stake in Adani Power, highlighting strong ownership and confidence in the company.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult with a qualified financial advisor before making any investment decisions.