Source: Business standard
Adani Power is making big moves in April, and investors are loving it. Adani Power stock is soaring, and it has already proved to be a major player in making headlines in the month of April. The stock hit a high of ₹584 since falling to a low of ₹462 on April 7, a run of more than 26% over the period and is currently ₹577, about 13.6% up over a similar time-frame. The NSE benchmark Nifty 50 index, in contrast, rose 0.4% on Wednesday, closing at 24,250
This rally is a sign of growing investor interest in the power sector, fuelled by expectations for a pick up in electricity demand during the summer months. Analysts also feel expectations of sustainable earnings growth is another factor driving performance of this stock and Adani Power is to announce its Q4FY25 results on April 30. Quarterly earnings could serve as a major catalyst for the next move in the stock.
Bullish Perspective Based on Robust Technical Signals
Technically, Adani Power is facing resistance at its 200-day Daily Moving Average (200-DMA) for the third day straight. The last time the stock finished above this long-term trend indicator was Oct. 15, 2024. The stock tanks now heading towards the weekly super trend line resistance (at ₹610) — an important level to track.
On the weekly chart, momentum indicators are showing great strength; which supports a positive near-term bias. Technical analysts suggest that any pullback could offer a fresh buying opportunity, given the overall bullish structure.
Key Levels to Watch
- Current Price: ₹577
- Upside Potential: 30%
- Resistance Levels: ₹610, ₹655, ₹685
- Support Levels: ₹549, ₹530, ₹515
Meanwhile, the daily chart indicates that the bullish bias is maintained as long as the plains station above ₹549. In case there is a price fall below this level, we will see a stronger support at ₹530 and ₹515. On sustaining above ₹610, a new rally may be envisaged, with medium-term price target placed at ₹655 followed by ₹685 and lastly around ₹750.
Trading Strategy
₹610 is an important resistance level for investors and traders. A prolonged move above this barrier could lead to a 30% upside. Current shareholders might think about building positions on pullbacks around the key support levels and new investors can look to confirm a breakout to enter.
Disclaimer: This article is based on technical analysis and publicly available information. Investors should conduct their own research or consult a financial advisor before making any investment decisions.
