Stock Radar: Over 200% rally in a year! This multibagger Adani group company is a good buy-on-dips stock; here’s why
The power stock rose from Rs 255 in June 2023 to Rs 874 in June 2024, showing an upside of over 240% in a year. It has been gaining momentum in the past few months, rising over 13% in a week, more than 30% in a month and over 40% in the last 3 months.
, a part of the companies, has rallied over 200% in a year and picked up momentum in the run-up to the 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," said in a report, adding that power and defence linked have the highest visibility.
Short-term traders can look to buy the on dips for a possible 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, 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, Associate at .
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 averages such as 5,10,30,50,100 and 200-DMA on the daily charts.
ETMarkets.com“A volume surge above the 21-week average indicates trader anticipation for accumulation. Notably, on the weekly scale, the stock has broken out of a 6-week inside bar range with significant volume in the prior week,” he said.
On the daily scale, a change in polarity from a rising trendline connected from December 2023 signals the beginning of a new upward trajectory.
The stock is consistently trading above its 20-week and 50-week EMAs, denoting a positive trend. The MACD study showcases bullish momentum, sustaining above the positive territory.
“Additionally, the ADX study above 34 and +DI above 37 on the weekly chart, along with the daily +DI showing polarity from a sloping trendline, reinforces the start of a fresh upward move, highlighting bullish sentiment for the stock,” highlighted Parekh.
“The ratio chart of Adani Power against the shows signs of continued outperformance, with the ratio line rising higher. Looking ahead, the stock appears poised for further gains, with a target set at 950. To manage risks effectively, it's recommended to implement a stop loss at 680 on a closing basis,” he recommended.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the )
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Source: Stocks-Markets-Economic Times
