Price Movement and Market Context
On 21 Jan 2026, Adani Energy Solutions Ltd (stock code 999961) closed at ₹888.20, down 2.14% from the previous close of ₹907.60. The intraday range saw a high of ₹928.70 and a low of ₹881.90, reflecting heightened volatility. The stock remains well below its 52-week high of ₹1,067.30 but comfortably above its 52-week low of ₹639.35, indicating a wide trading band over the past year.
Comparatively, the stock’s recent returns have underperformed the broader Sensex index. Over the past week, Adani Energy Solutions declined by 4.75%, while the Sensex fell by 1.73%. The one-month and year-to-date returns are also notably weaker at -10.15% and -13.70%, respectively, compared to the Sensex’s -3.24% and -3.57%. However, the stock has delivered an 8.89% gain over the past year, slightly outperforming the Sensex’s 6.63% rise. Longer-term returns remain impressive, with a five-year gain of 94.97% versus the Sensex’s 65.05%, and a staggering ten-year return of 2,728.66% compared to 241.54% for the benchmark.
Technical Trend Shift: From Mildly Bullish to Sideways
The technical trend for Adani Energy Solutions has shifted from mildly bullish to sideways, signalling a loss of upward momentum. This change is corroborated by several technical indicators that paint a nuanced picture of the stock’s near-term prospects.
The Moving Average Convergence Divergence (MACD) indicator presents a mixed view. On a weekly basis, the MACD is mildly bearish, suggesting that momentum is weakening. Conversely, the monthly MACD remains mildly bullish, indicating that longer-term momentum has not yet deteriorated significantly. This divergence between weekly and monthly MACD readings highlights a potential consolidation phase rather than a decisive trend reversal.
The Relative Strength Index (RSI) offers no clear signal on either the weekly or monthly charts, hovering in a neutral zone. This lack of directional RSI momentum suggests that the stock is neither overbought nor oversold, reinforcing the sideways trend assessment.
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Bollinger Bands and Moving Averages Signal Bearish Pressure
Bollinger Bands on both weekly and monthly charts are bearish, indicating that the stock price is trending towards the lower band and suggesting increased selling pressure. This technical setup often precedes further downside or consolidation, especially when combined with other bearish signals.
Daily moving averages, however, remain mildly bullish, reflecting some short-term support. This divergence between daily and longer-term indicators suggests that while immediate price action may find some buying interest, the broader trend is losing strength.
Additional Technical Indicators: KST, Dow Theory, and OBV
The Know Sure Thing (KST) oscillator aligns with the MACD’s mixed signals, showing a mildly bearish stance on the weekly chart but a mildly bullish position on the monthly chart. This further emphasises the current indecision in the stock’s momentum.
Dow Theory analysis on the weekly timeframe is mildly bearish, indicating that the stock’s primary trend may be weakening. The monthly Dow Theory reading shows no clear trend, reinforcing the sideways momentum narrative.
On-Balance Volume (OBV) readings also reflect this duality: mildly bearish on the weekly scale but mildly bullish monthly. This suggests that while recent trading volumes have favoured sellers, longer-term accumulation may still be occurring.
Mojo Score and Grade Update
MarketsMOJO’s proprietary scoring system has downgraded Adani Energy Solutions Ltd from a ‘Sell’ to a ‘Strong Sell’ rating as of 8 Jan 2026. The current Mojo Score stands at 18.0, reflecting significant deterioration in technical and fundamental parameters. The Market Cap Grade remains at a low 1, indicating limited market capitalisation strength relative to peers in the power sector.
This downgrade signals heightened risk for investors, particularly given the stock’s recent underperformance relative to the Sensex and the mixed-to-bearish technical signals.
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Investment Implications and Outlook
Investors should approach Adani Energy Solutions Ltd with caution given the current technical landscape. The combination of a sideways to mildly bearish trend, bearish Bollinger Bands, and a strong downgrade in Mojo Grade suggests limited upside in the near term. The stock’s recent underperformance relative to the Sensex and the power sector further compounds concerns.
However, the mildly bullish monthly MACD and OBV readings indicate that longer-term fundamentals may still hold some promise, particularly for investors with a multi-year horizon. The stock’s impressive ten-year return of 2,728.66% versus the Sensex’s 241.54% underscores its historical growth potential, though recent volatility and technical deterioration warrant prudence.
Traders may consider waiting for clearer confirmation of trend direction before initiating new positions. Monitoring key support levels near ₹880 and resistance around ₹930 will be critical in assessing the stock’s next move. Additionally, watching for improvements in weekly MACD and RSI signals could provide early indications of renewed momentum.
Sector and Industry Context
Within the power sector, Adani Energy Solutions Ltd faces competitive pressures and regulatory challenges that may influence its technical and fundamental outlook. The sector’s overall performance and policy developments should be closely monitored as they can materially impact stock momentum and valuations.
Given the stock’s current Market Cap Grade of 1, it is relatively small compared to larger power companies, which may limit liquidity and increase volatility. This factor should be considered by investors seeking stable exposure to the power sector.
Summary
Adani Energy Solutions Ltd is currently navigating a complex technical environment characterised by a shift from mildly bullish to sideways momentum. Mixed signals from MACD, RSI, Bollinger Bands, and moving averages highlight the stock’s indecision and potential for further consolidation or downside. The recent downgrade to a Strong Sell rating by MarketsMOJO reinforces the need for caution.
While longer-term indicators suggest some underlying strength, near-term risks predominate. Investors should weigh these factors carefully and consider alternative opportunities within the power sector or broader market until clearer technical confirmation emerges.
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