ADANIPOWER - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | ADANIPOWER | Market Cap | 4,27,831 Cr. | Current Price | 222 ₹ | High / Low | 226 ₹ |
| Stock P/E | 38.9 | Book Value | 27.5 ₹ | Dividend Yield | 0.00 % | ROCE | 19.2 % |
| ROE | 22.1 % | Face Value | 2.00 ₹ | DMA 50 | 174 ₹ | DMA 200 | 148 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | 0.28 % | PAT Qtr | 3,087 Cr. | PAT Prev Qtr | 2,047 Cr. |
| RSI | 82.7 | MACD | 17.7 | Volume | 7,05,35,661 | Avg Vol 1Wk | 5,95,01,029 |
| Low price | 101 ₹ | High price | 226 ₹ | PEG Ratio | 17.5 | Debt to equity | 0.93 |
| 52w Index | 96.5 % | Qtr Profit Var | 30.9 % | EPS | 5.70 ₹ | Industry PE | 30.5 |
📈 Chart Patterns & Trend: ADANIPOWER is trading well above both 50 DMA (₹174) and 200 DMA (₹148), confirming strong bullish momentum. RSI at 82.7 indicates overbought conditions, while MACD at 17.7 confirms positive divergence. Bollinger Bands suggest volatility expansion with price near its 52-week high (₹226), signaling stretched momentum. Price action remains closer to highs, reflecting strength but also risk of short-term correction.
🔑 Momentum Signals: RSI above 80 signals extreme overbought territory. MACD positive supports bullish bias. Volume (7.05 Cr) is above average (5.95 Cr), confirming strong accumulation. Trendlines highlight support near ₹210–₹215 and resistance near ₹225–₹230.
🎯 Entry Zone: ₹210 – ₹215 (support levels)
💰 Exit Zone: ₹225 – ₹230 (resistance levels)
📊 Status: Trending upward but overbought; consolidation or pullback likely unless earnings growth sustains.
Positive
- Quarterly PAT growth (+30.9%) shows strong earnings momentum
- EPS at ₹5.70 supports valuation strength
- ROE (22.1%) and ROCE (19.2%) highlight efficiency
- Stock trading above both 50 DMA and 200 DMA
- FII holdings increased (+0.09%) and DII holdings rose (+0.28%)
Limitation
- P/E (38.9) above industry average (30.5)
- RSI extremely overbought at 82.7, risk of correction
- PEG ratio at 17.5 indicates expensive growth pricing
- Dividend yield at 0.00% offers no income support
- Debt-to-equity ratio at 0.93 adds leverage risk
Company Negative News
- Valuation concerns due to stretched multiples
- High leverage levels may limit flexibility
Company Positive News
- Quarterly profit improved significantly (₹3,087 Cr vs ₹2,047 Cr)
- Strong trading volumes reflect investor interest
Industry
- Industry PE at 30.5 highlights sector stability
- Power sector outlook remains strong, supporting long-term fundamentals
Conclusion
⚠️ ADANIPOWER is trending upward with strong technical momentum supported by earnings growth and volumes. However, valuations are stretched and RSI indicates overbought conditions. Best suited for tactical trades near ₹210–₹215 with profit-taking around ₹225–₹230. Long-term investors should be cautious given leverage and premium valuation.
Would you like me to add a comparative overlay against peers like NTPC, Tata Power, and JSW Energy so you can see how ADANIPOWER stacks up in valuation, efficiency, and momentum?