Adani Power shares zoom nearly 40% in just 13 sessions. Should you book profits now?

Shares of Adani Power have been on a strong run this month, surging as much as 37% over 13 sessions. The rally in Adani Power shares has made it the most valuable company within the Adani Group, with a market capitalisation of Rs 3.93 lakh crore, surpassing Adani Ports at Rs 3.70 lakh crore.

Part of the diversified Adani Group, Adani Power is India’s largest private thermal power producer. The company has a total generation capacity of 18,110 MW across thermal plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand and Tamil Nadu, along with a 40 MW solar project in Gujarat.

Time to book profits or double down on Adani Power shares?

Adani Power share price is exhibiting a strong continuation of its primary uptrend, supported by a clear alignment of moving averages (short-term above medium and long-term), indicating sustained bullish momentum. After a healthy consolidation phase, the stock has witnessed a decisive breakout with expanding volumes, signalling fresh participation. The recent sharp upmove toward the Rs 190–200 zone in the Adani Power share price reflects strength, though the steep rally also suggests near-term overextension, Ajit Mishra, senior vice president at Religare Broking said.

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Momentum indicators are trending higher but approaching overbought territory, which may lead to brief consolidation or minor pullbacks. Immediate support is placed around Rs 170–175, followed by a stronger base near Rs 150. As long as the price holds above these levels, the bias remains positive, and dips are likely to be bought into, with potential for further upside continuation.

Ruchit Jain, vice president of technical research at Motilal Oswal, said Adani Power share price had recently given a breakout from its long consolidation phase with good volumes. This, along with the positive momentum across the Adani Group stocks, has led to strong buying interest in the counter. Traders with existing long positions should hold and continue to ride the trend, while any declines in the near term can be seen as buying opportunities.

From a fundamental perspective, the surge comes amid rising power demand. JM Financial noted in a recent report that power demand had peaked in early March, but an unusual western disturbance from March 20 disrupted the trend. A massive cloud cover stretching nearly 1,000 km from Afghanistan through Pakistan into India brought widespread rainfall and unseasonably cool weather. With this cloud system now receding from North India, experts expect a return of hotter conditions, which could drive a fresh surge in power demand.

“All in all, we anticipate a shortfall in hydro generation (negative for NHPC, SJVN), spike in coal-fired generation (positive for NTPC, Adani Power), extension of Section-11 (Tata Mundra) and high merchant prices (Adani Green, Adani Power),” the domestic brokerage concluded.

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Over the weekend, the company said its wholly owned arm Adani Atomic Energy has incorporated a new subsidiary, Coastal-Maha Atomic Energy, as it expands its presence in the nuclear energy space. The entity will undertake the generation, transmission and distribution of power from nuclear and atomic sources.

At about 11:10 am, Adani Power shares were trading at Rs 204, higher by 1.5% from the last close on the BSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)