Adani Power stock is in the spotlight today after the Adani Group company announced that it has signed a power supply contract with MPSEZ Utilities Limited (MUL). Compared to its previous BSE close of Rs. 196.25, Adani Power shares increased 1.75% to Rs. 199.70. 2.08 lakh shares of the company were traded in all, resulting in a 4.13 crore turnover on the BSE. The company's market value increased to Rs 75,981 crore on the BSE.
The share's 52-week high was set on August 22, 2022, at Rs. 432.80, and its 52-week low was set on February 28, 2023, at Rs. 132.55. Based on the stock's current market price, its decline from the yearly high is 54.39 percent.
In Technical terms, Adani Power's relative strength index (RSI) is at 47.4, indicating that the stock is neither overbought nor oversold at this time. With a beta of 1.2, the stock's volatility over the course of a year is quite high. Adani Power stock is now trading above its five-day, twenty-day, and fifty-day moving averages, but below its 100 day and 200 day moving averages.
Adani Power stated in a regulatory filing that the power supply arrangement is for 15 years.
Recent market volatility and rising interest rates have resulted in negative returns for investors in the Adani Power shares. The stock has lost 34.45% in 2023 and 20.51% in one year.
The BSE power index saw increases of 4.23 percent this year but losses of 24.28 percent during the previous 12 months. The BSE power index soared 144.35% in three years.
Take a look at what analysts had to say about the stock's future in the power industry.
Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher said,"Adani Power stock after the huge erosion since January 2023 has bottomed out near Rs 132 zone and recovered to some extent but the daily price action has narrowed down drastically making the chart technically look less significant. There is resistance witnessed near the 50EMA level of Rs 201 zone and would need a decisive move past the previous peak level of Rs 217 to indicate a breakout and establish some conviction for further upward move."
Abhijeet from Tips2trades said, "Adani Power has a strong resistance at Rs 198 on the Daily charts. Investors should buy only if close is above this level for targets of Rs 220-235 in the coming weeks. Support will be at Rs 185."