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Multibagger stock: After hitting ₹1 lakh crore market capitalization last week, Adani Power shares have been hitting upper circuit for last 5 successive trade sessions. One of the multibagger stocks in 2022, this Adani group stock has delivered near 200 per cent return to its investors this year and experts are expecting further upside in this scrip. After hitting upper circuit on last four sessions, Adani Power share price today opened with upside gap and went to hit 5 per cent upper circuit after climbing to ₹299.90 per share levels on NSE.
According to stock market experts, entire energy and power sector is expected to outperform key indices as thermal power generation has been hit badly due to lower coal supply. Apart from this, demand for power is expected to grow northward during summer. So, big power manufacturing companies like Adani Power is expected to get margin benefit on their buffer coal stocks. On chart pattern, Adani Power shares have given 'flag pattern breakout' at ₹260 levels and it has recently formed 'higher higher higher low formation', which indicates further upside in this multibagger stock.
Highlighting the reason for Adani Power share price rally, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Adani Power is India's largest private thermal power producer and in recent times, coal supply has been hit badly leading to rise in coal prices globally. Due to this, there are chances of price rise in both power and coal to continue as well. Hence, market is expecting margin benefit for Adani Power on their buffer coal stock. Apart from this, power consumption is expected shot up as summer season has arrived and mercury levels have been scaling new highs these days."
Expecting what Adani Power share chart reflects, Sumeet Bagadia, Executive Director at Choice Broking said, "Adani Power shares have given flat pattern breakout at ₹260 levels. After that breakout, this Adani stock has formed higher higher higher low formation on chart pattern, which signals further rise in the scrip. It has immediate base at ₹280 levels. So, those who have this stock in their portfolio can continue to hold the stock maintaining stop loss below ₹280 for further upside in near term. The immediate hurdle for Adani Power share is placed at ₹325 and ₹340 levels, which short term shareholders can consider a profit-booking levels as well."
Last week, Adani Power shares hit market capitalization of ₹1 lakh crore. Today Adanin Power shares' market valuations have grown up to ₹1.16 lakh crore. So, in less than one week, Adani Power shares' market value has surged near 16% that signals about the strong rally it has witnessed despite weak market sentiments.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
