BackThis Adani group stock surges 17% in a week. Should you buy now?
Adani Power share price looks in bull phase after giving breakout at ₹124.40 on Wednesday session, believe stock market experts
PremiumAdani Power share price has surged from around ₹107 to ₹125.60 levels on NSE, logging near 17 per cent rise in last one week. According to stock market experts, this multibagger Adani group stock has given breakout at ₹124.40 on closing basis yesterday and entered bull phase on chart pattern. They said that the stock may go up to ₹175 apiece levels by end of March 2022.
According to stock market experts, Adani Power's subsidiary and Gujarat Urja Vikas Nigam have agreed to resolve its disputes, which is a huge relief for the company. In its latest exchange communication, the Adani group company informed about the development that triggered fresh buying in the counter leading to sharp upside movement in the multibagger stock. Experts went on to add that Adani Power share price looks in bull phase after giving breakout at ₹124.40 on Wednesday session.
Speaking on the reason for rise in Adani Power share price; Ravi Singhal, Vice Chairman at GCL Securities said, "Adani Power (Mundra), a subsidiary of Adani Power, and Gujarat Urja Vikas Nigam Ltd have agreed to resolve its disputes related to power purchase agreement and revive the canceled bid. This is a big fundamental development for the company, which is caught attention of bulls and they are doing bulk buying in the counter."
Expecting further rally in this Adani group stock; Anuj Gupta, Vice President at IIFL Securities said, "The stock has entered bull phase after giving fresh breakout at ₹124.40 levels on Wednesday. It is facing minor hurdle at ₹135.50 levels. On breaching this resistance, the multibagger stock is expected to taste ₹160 levels in near term."
Advising intraday traders to buy Adani Power shares; Sumeet Bagadia, Executive Director at Choice Broking said, "The Adani group stock hit its 4-month high on Wednesday after breaching 3 months high of ₹124.40 apiece levels. It is still looking positive on chart pattern and one can add this stock in one's portfolio at CMP for immediate short term target of ₹140 levels. However, one must maintain strict stop loss at ₹110 levels while taking position in this Adani group stock."
Advising positional investors to buy this multibagger stock and hold it till end of this financial year, Ravi Singhal of GCL Securities said, "The stock is expected to go up to ₹175 by the end of March 2022."
Recently Adani Power informed Indian exchange about the Deed of Settlement signed by Adani Power (Mundra) Limited (Company's wholly owned subsidiary) with Gujarat Urja Vikas Nigam Ltd citing, "We would like to convey that Adani Power (Mundra) Ltd. ("APMuL"), wholly owned subsidiary of the Company, and Gujarat Urja Vikas Nigam Ltd. ("GUVNL"), have agreed to: (a) resolve all disputes pertaining to Power Purchase Agreements ("PPAs") dated 2nd February 2007 ("Bid-2 PPA") and 6th February 2007 ("Bid-1 PPA"), and Supplementary PPAs ("SPPAs") dated 5th December 2018 connected to both these PPAs, in a comprehensive and amicable manner and withdraw all related pending cases/petitions, claims filed by either side against each other; and (b) revive the canceled Bid-2 PPA and its connected SPPA, which stood terminated by virtue of decision of the Hon'ble Supreme Court dated 2nd July 2019 and in turn, APMuL and GUVNL to not claim any compensation in terms of the said judgment in relation to termination of Bid-2 PPA."
Adani Power share price history
Adani Power shares are one of the multibagger stocks as it has given near 130 per cent return to its shareholders in last one year. In this period, this Adani group stock has surged from ₹54.25 to ₹125.60 levels on NSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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