Adani Power share price rally can be attributed to the two major reasons — its investments in green energy sparking value buying and partial payments received by the Rajasthan and Maharashtra governments that was long due, say experts
Adani Power share price has climbed over 70 per cent in the last four trade sessions. As per the Adani Power share price history, the Adani group stock had closed at ₹97.35 at NSE on 3rd June 2021, which is currently trading at ₹166.90 (at 10:07 AM) — giving over 70 per cent return to its share holders. According to stock market experts, this sharp rise in Adani Power stock price can be attributed to the two major reasons — its investments in green energy sparking value buying and partial payments received by the Rajasthan and Maharashtra governments that was long due. Apart from this, cancellation of the Adani Power delisting has also worked in favour of Adani Power share price rally.
Highlighting the fundamental reasons supporting Adani Power share price rally Ravi Singhal, Vice Chairman at GCL Securities said, "Adani Power shares are rising on two fundamental reasons — its investments in green energy sparking value buying and partial payments made by the Rajasthan and Maharashtra governments that was long due." He said that due to the rising petrol and diesel prices, people are moving towards electric vehicles and the company has recently made investments in green energy that has triggered value buying among the long-term investors. Apart from this, the company has received partial payment from the Rajasthan and Maharashtra state governments, which will lead to reduction in debt of the company. Singhal also said that cancellation of Adani Power share price delisting has favoured stock price rally as fresh delisting would take place at higher price as we witnessed in the case of Vedanta.
On technical reasons that helped Adani Power stock price climb over 70 per cent in the last four days Mudit Goel, Senior Research Analyst at SMC said, "Adani Power has given breakout at ₹100 and went on to break the strong hurdle of ₹150. Those who have holdings are advised to maintain trailing stop loss at ₹150 and book profit at around ₹185 to ₹190."
Speaking on Adani Power share price target in long-term time-frame Ravi Singhal of GCL Securities said, "Those who want to buy Adani Power shares keeping long-term time-horizon, are advised to buy the counter in ₹120 to Ra 150 range (not at current levels) as some profit-booking is expected in the counter. In 6-8 months, Adani Power share price may go up to ₹255. So, if someone buys Adani Power shares, he or she should maintain long-term perspective and strictly maintain stop loss at ₹99 while buying the counter in the given range."