ADANIPOWER - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 3.5

📊 Adani Power shows strong fundamentals with high ROCE (23.7%) and ROE (27.0%), moderate valuation (P/E 24.3 vs industry 21.9), and robust market capitalization. Technically, the stock is trading above its 200 DMA (131 ₹) but slightly below 50 DMA (146 ₹), with RSI at 40.0 indicating weak momentum and MACD negative. Quarterly profit declined (-7.43%), raising caution, but overall efficiency and sector strength make ADANIPOWER a fair candidate for swing trading.

💡 Optimal Entry Price: Around 138–142 ₹ (near current support zone).

🚪 Exit Strategy: If already holding, consider exiting near 160–165 ₹ resistance or if price falls below 135 ₹ support.

✅ Positive

• 📈 Strong ROCE (23.7%) and ROE (27.0%) highlight excellent operational efficiency.
• 💵 EPS of 5.83 ₹ supports earnings strength.
• 📊 PEG ratio of 0.76 indicates reasonable growth valuation.
• 📈 Price above 200 DMA (131 ₹), showing long-term strength.
• 📉 DII holdings increased (+0.94%), reflecting domestic institutional support.

⚠️ Limitation

• 📉 RSI at 40.0 indicates weak momentum.
• 📉 MACD negative (-2.29), confirming bearish undertone.
• 📉 Dividend yield of 0.00% offers no income return.
• 📉 Debt-to-equity ratio of 0.94 is relatively high.
• 📉 Price below 50 DMA (146 ₹), signaling short-term weakness.

🚨 Company Negative News

• 📉 Quarterly profit declined (3,119 Cr. → 2,735 Cr.), showing earnings slowdown (-7.43%).
• 📉 FII holdings decreased (-0.93%), reflecting reduced foreign investor confidence.

🌟 Company Positive News

• 📈 PAT remains strong at 2,735 Cr. despite sequential decline.
• 📊 DII inflows (+0.94%) add support to stock momentum.
• 📈 Strong 52-week performance (56.2%) highlights consistent investor demand.

🏭 Industry

• 📊 Industry PE is 21.9, slightly lower than Adani Power’s 24.3, suggesting modest premium valuation.
• 📈 Power sector outlook remains positive, supported by demand growth and infrastructure expansion.

📝 Conclusion

⚖️ Adani Power is fundamentally strong but technically weak, making it a cautious swing trade candidate. Entry near 138–142 ₹ offers a favorable risk-reward setup, with exit near 160–165 ₹. Strict risk management is essential given weak technical indicators and declining quarterly profits.

Would you like me to extend this into a side-by-side comparison with NTPC and Tata Power so you can see relative swing trade opportunities?