Adani Power share price hit its 5 per cent upper circuit for the second consecutive session on Tuesday, April 2, in an otherwise weak market. Adani Power share price opened 2.4 per cent higher at ₹574.05 against its previous close of ₹560.35 and soon jumped 5 per cent to hit its upper price band of ₹588.35 on BSE.
The stock had hit its 5 per cent upper circuit in the previous session also following its announcement on Mukesh Ambani’s Reliance Industries picking up a 26 per cent stake in a Madhya Pradesh power project of Gautam Adani, and signing a pact to use the plants’ 500 MW of electricity for captive use.
Share price trend
The stock hit its 52-week high of ₹589.30 on December 6 last year and its 52-week low of ₹185.10 on April 19 last year. At the current market price of ₹588.35, the stock is up nearly 218 per cent from its 52-week low.
On a monthly basis, the stock has already recorded a remarkable increase of over 10 per cent in April.
Should this trend continue and the stock conclude the month positively, it would mark a significant reversal from the consecutive declines witnessed over the past two months.
Adani Power share price experienced a drop of over 2 per cent in February followed by a nearly 3 per cent decrease in March.
What should investors do?
Some investors believe investors can remain invested in this stock at this juncture.
Milan Vaishnav, CMT, MSTA, Founder and Technical Analyst of Gemstone Equity Research and ChartWizard FZE pointed out that after forming a high in December last year, the stock has been in a sideways consolidation. Following three months of consolidation, the stock has attempted to stage a breakout from this sideways consolidation zone.
Vaishnav said the stock remains locked in the upper circuit; at the same time, it has tested its previous high seen in December last year. There is a high chance that the stock will confirm the breakout over the coming days.
Vaishnav believes one can remain invested in the stock at this juncture but should have a stop loss to minimise the risk.
