Adani Power share price at new 52-week high after Q1 profit rises 17-fold; should you buy, sell, hold?

Adani Power share price jumped nearly 4 per cent to a new 52-week high of Rs 354 apiece on BSE on Thursday, after the company posted a manifold jump in consolidated net profit to Rs 4,779.86 crore in Q1

Adani Power share price at new 52-week high after Q1 profit rises 17-fold; should you buy, sell, hold?
Adani Power's total income rose to Rs 15,509 crore in the April-June quarter of the fiscal. Image: Pixabay

Adani Power share price jumped nearly 4 per cent to a new 52-week high of Rs 354 apiece on BSE on Thursday, after the company posted a manifold jump in consolidated net profit to Rs 4,779.86 crore in Q1. The company had reported a consolidated net profit at Rs 278.22 crore in the corresponding quarter of the previous year. During the quarter, Adani Power share price gained over 30% to presently trade around 350 mark. Analysts say that the stock had touched 344 levels in June, and post that, there was profit booking in the stock leading to a correction of 30%.

Also read: Mahindra & Mahindra, Adani Power, PVR at new 52-week highs on BSE; Future group stocks at new lows

Overall the stock’s trend remains positive, however, for any further meaningful upside, the stock must trade and stay above the 350 mark, Aamar Deo Singh, Head Advisory, Angel Broking, told FinancialExpress.com. “Investors are advised to book part profits, and can hold the balance, as the stock has now, a very strong support zone around the 280-300 zone,” Singh advised.

Adani Power’s total income rose to Rs 15,509 crore in the April-June quarter of the fiscal. It stood at Rs 7,213.21 crore in the same period a year-ago. On technical setup, the counter is witnessing a surge in volumes and volatility,” Ravi Singh, VP & Head of Research, Share India Securities, told FinancialExpress.com. “Adani Power stock is showing strength on the major momentum indicators like RSI, MACD, MAs both on daily and intraday charts. We may expect the counter to continue its rally for the target of 380 levels in the near term,” Ravi Singh added.

Also read: Adani Power Q1 profit rises to Rs 4,780 crore

Adani Power stock price has added 7 per cent in five days, and 33 per cent in last on month. However, stock rallied 221 per cent in past six months, and a massive 244 per cent so far in the year 2022. The stock has nearly tripled investors’ money in last one year. Analysts said that Adani Power stock has witnessed buying demand in the last one month forming higher peak and higher trough in the weekly time frame. The stock has generated a breakout above the rounding formation of the last 1.5 months signaling resumption of up move and offers fresh entry opportunity. 

“The stock has immediate support at 285-290 levels being the confluence of the 50-DMA and the 23.6% retracement of the entire up move since Mar’20 (Low: 23; High:344). However, amidst all the optimism, bearish Harmonic pattern ABCD might be in the formation stage, though steady sustenance above of 350 supported by strong volume can negate the said pattern. Hence investors can accumulate the stock at dip towards 300 to ride the next leg of up move of 380-385,” Tirthankar Das, Head of Technical Research, Ashika Group, told FinancialExpress.com.

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