Adani Power share price rallies over 300% in 8 months, tops NTPC in m-cap; should you buy, sell, hold?

Adani Power share price soared 5 per cent to a new 52-week high of Rs 419 apiece on Friday, taking its rally so far in 2022 to 307 per cent

Adani Power share price rallies over 300% in 8 months, tops NTPC in m-cap; should you buy, sell, hold?
Adani power robust performance is mainly contributed by the surge in power demand throughout the period. Image: Reuters

Adani Power share price soared 5 per cent to a new 52-week high of Rs 419 apiece on Friday, taking its rally so far in 2022 to 307 per cent. With today’s gain, Gautam Adani group firm has overtaken state-run NTPC in market capitalisation. Technical analysts say that Adani Power stock now remains steeply overextended on charts. “Traders must now focus on booking profits. Investors can either book entire profits or at least partial profits. A trailing SL of 400 must be maintained. If the stock is seen closing below this point then investors must completely exit,” Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services, told FinancialExpress.com.

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Adani Power share price tracker

Today: 5 per cent

5 days: 17 per cent

1 month: 38 per cent

6 months: 238 per cent

YTD 2022: 307 per cent

1 year: 424 per cent

Adani Power stock: What technical charts say

Even though Adani Power and the other power sector stocks have seen an excellent uptrend recently, markets are technically extremely overbought, AR Ramachandran, Co-founder & Trainer, Tips2Trades, said. “Investors are advised to book profits at current levels and wait for lower levels of 325-330 to initiate buy positions,” Ramachandran told FinancialExpress.com. Adani Power reported a 17-fold jump in its consolidated profit after tax (PAT) at Rs 4,780 crore in the quarter ended 30 June 2022. It had posted PAT of Rs 278 crore in Q1FY22.

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Why is the Adani Power share price rising?

Adani power robust performance is mainly contributed by the surge in power demand throughout the period, said an analyst. The company has posted impressive earnings growth in the last quarter. “On technical setup also, the counter witnessed a surge in volumes amid high volatility and a massive rally,” Ravi Singh, VP & Head of Research, Share India Securities, told FinancialExpress.com. Singh added that now the stock of Adani Power seems to be overbought zone and investors must wait for fair value for fresh investment. “The value buying may trigger around 370 levels which holds good opportunities for long positions,” he said.

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