Adani Power share price rises 7% : Should you Buy, Sell or Hold the stock?

Stock Market Today: Adani Power share price gained more than 7% in morning trades on Wednesday.

Adani Power share price opened at ₹558.05 on the BSE on Wednesday , slightly higher than previous close of ₹557.80. The Adani power share price thereafter gained to intraday highs of ₹598 marking gains of more than 7%

The Adani power share price though has been seeing correction over the past one month and is down 8-9% during the period with domestic equity markets being under correction mode. However Adani Power has been buzzing withe news flow

Adani power recently announced that that the National Company Law Tribunal, Bench at Ahmedabad (“NCLT”) has sanctioned the Scheme of Amalgamation of SMRPL (Stratatech Mineral Resources Private Limited) a wholly owned subsidiary of Adani Enterprises Limited with Mahan Energen Limited MEL (the “Scheme”) on November 7, 2024.

Expansions under way

In the conference call post Q2 results Dilip Jha , Chief Finance Officer Adani power had said that a 1,600 MW ultra-supercritical expansion project is under execution at the Mahan Energen Site at Singrauli, Madhya Pradesh. The advance ordering done by the company will help us de-risk our project execution by ensuring timely availability of the most critical equipment

Adani Power aims to reach more than 30 GW of capacity by FY30. As per the CFO, Adani Power's existing operations will generate sufficient cash flows to enable it reach our targets without excessive leverage. It will follow a debt-light strategy to fund capital expenditure, relying on our strong cash flow generation to achieve our long-term target. It has given advance orders to the Main Plant Supplier for 11.2 gigawatt of capacity, which will be commissioned in a phase-wise manner by FY30.

Technical views

As per technical views by Anshul Jain, Head of Research at Lakshmishree Investment and Securities, Adani Power is Awaiting Breakout for Traders

Adani Power's stock had witnessed a bullish breakout in April 2024 after consolidating for three months within an inside bar pattern. Currently, it is retesting the breakout point at ₹560 with shallow trading volumes, indicating that the stock might be oversold, said Jain. This suggests accumulation is underway, making it a compelling opportunity for long-term investors to consider at current levels.

For traders, the key pivot level to watch is ₹640. as per Jain. A breakout above this mark could trigger momentum buying, attracting short-term players. Until then, traders are advised to wait for a confirmed move past ₹640 to ride the momentum wave. Investors can consider this phase a strategic entry point for potential gains.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions