Stock Radar: Over 200% rally in a year! This multibagger Adani group company is a good buy-on-dips stock; here’s why
Adani Power, a part of the Adani Group companies, has rallied over 200% in a year and picked up momentum in the run-up to the Lok Sabha election outcome in anticipation of continuity of reforms.
«If the current government retains majority, as exit polls suggest, it adds wings to the strong sector outlook,» Jefferies said in a report, adding that power and defence linked capex have the highest visibility.
Short-term traders can look to buy the stock on dips for a possible target of Rs 950 in 3-4 weeks, suggested experts.
The power stock rose from Rs 255 as on June 2, 2023, to Rs 874 on June 3, 2024, which translates into an upside of over 240% in a year.
The stock has been gaining momentum in the past few months. It rose over 13% in a week, more than 30% in a month and over 40% in the last 3 months, Trendlyne data showed.
“Adani Power has exhibited a robust price structure since March 2023, maintaining a rising trend. The stock has shown strong relative strength compared to broader market volatility,” said Neel .H. Parekh, Technical Research Associate at GEPL Capital.
However, it witnessed mild profit taking in May but bounced back after retesting the rising trendline support connecting the highs of 6th December 2023, 4th April 2024 and 21st May 2024.
The stock bounced back after retesting the neckline of the above trendline, which was placed around 650-670 and will now act as a crucial support for the stock.
In terms of price action, the stock is trading above most of the crucial short- and long-term moving
