Home / Markets / Stock Markets /  Why Adani Power share price is skyrocketing today — explained

Adani Power share price has been in uptrend for the last one year, delivering multibagger return. The Adani Group stock hit upper circuit in Wednesday's early deals after Gautam Adani's recent tweet of committed to supplying power to Bangladesh from December 2022. The stock has risen by near 390 to 416 apiece levels on NSE in last two days, logging near 6.50 per cent rise in two straight sessions. Adani Power share price today opened downside but went on to hit intraday high of 415.7 apiece.

According to stock market experts, fundamentals of Adani Power are favourable as demand supply constraint is in favour of the power company and market is expecting better quarterly numbers from the company in upcoming results. However, recent reason for rise in Adani Power share price is Gautam Adani's announcement to initiate power supply to Bangladesh from December 2022. They said that the stock has made bullish engulfing pattern on daily chart, which signals further upside in this multibagger Adani group stock.

Speaking on the recent reason for rise in Adani Power share price, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Adani Power is expected to give better quarterly number due to demand-supply constraint in power supply business. However, the recent reason for Adani Power share price rise is Gautam Adani's tweet in which he has announced to supply power to Bangladesh from this December. This has gone down well among stock market bulls and they are buying in bulk with an expectation that the stock may continue to give upside movement in short to medium term."

Expected further upside in Adani Power shares, Ravi Singhal, CEO at GCL Securities said, "Adani Power share has made bullish engulfing pattern on daily chart pattern that means the stock is expected to give sharp upside movement in short term. Those who have this stock in their portfolio are advised to maintain stop loss at 385 and hold the counter for the target of 444 and 488 respectively."

 

On 5th September, 2022, Indian billionaire and Adani Group Chairman Gautam Adani made an announcement about power supply initiation to Bangladesh from December 2022 from his official tweeter handle citing, "It is an honour to have met Hon PM of Bangladesh Sheikh Hasina in Delhi. Her vision for Bangladesh is inspirational and stunningly bold. We are committed to commissioning our 1600 MW Godda Power Project and dedicated transmission line to Bangladesh by Bijoy Dibosh, 16 Dec 2022.

See Gautam Adani's tweet below:

Adani Power shares are one of the multibagger stocks that Dalal Street has delivered in last one year. It is one of the multibagger stocks in 2022 as well. In YTD time, Adani Power share price has surged from 102 to 406 apiece levels, delivering around 300 per cent return to is share holders whereas in last one year, Adani Power shares have surged from around 93 to 406 levels, logging near 350 per cent rise in this time.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Asit Manohar

Chief Content Producer at Live Mint Digital Team
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