Adani Power's shares have plummeted by over 26 per cent this month, a highly volatile market due to negative global cues. The stock of Adani Group, which hit an all-time high of Rs 344.75 on May 30, has fallen to Rs 253.30 today, which is a 26.52 per cent decline in the scrip.
The power producer's share fell as a result of the decline in Sensex and Nifty this month.
Nifty lost 6.16 per cent during the period, while Sensex is down 5.80 per cent in June. Adani Power's stock was up 100 per cent in a year and 154.24 per cent in 2022.
Adani Power's stock was at a new intraday high of Rs 258.40, rising 4.45 per cent from the previous close of Rs 247.40 on the BSE. The share opened higher at 249 today.
A total of 10.15 lakh shares of the firm changed hands, resulting in a turnover of Rs 25.75 crore. The firm's market cap rose to 99,007 crore on the BSE.
Adani Power stock is trading higher than 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages. The stock hit a 52 week low of Rs 69.95 on August 24, 2021.
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With the stellar rally in Adani Power coming to an end last month, investors are in a dilemma as to whether they should buy, sell or hold the stock due to highly volatile market conditions.
Here's a look at what analysts said about the prospects of the stock after the recent crash.
The stock seems to be more resilient in comparison to the other midcap counter, though prices haven't reached the 23.6 per cent retracement of the entire correction rally since March 20 at Rs 268. Short-term trend might have changed to negative and the next crucial support level of Rs 220 38.2 per cent retracement might arrest the corrective decline. There are no signs of bottoming out on the oscillator front. For investors, the amount should be less than 220. Adani Power is 25 per cent less than its 52 week high. The stock is currently facing selling pressure and is currently forming an inside bar. If the selling continues, the stock could reach 210 levels in the coming days. It can be bought at the support area of Rs 210 with a very small stop loss as there is a general rise in demand for power and this can benefit the stock in the near term. Adani Power is witnessing selling pressure despite the weak equity market. The stock is showing the possibility of lower level buying on technical parameters. The stock may gain steam in the near term for the target of Rs 280 -- 300. The double blow of low growth with high inflation, infrastructure, and power stocks has taken a beating from their all-time highs, including Adani Power. The immediate support of Rs 238 remains. A dip near Rs 205 -- Rs 214 should be better levels to buy for the higher targets of Rs 282 -- Rs 320 in the coming weeks.