Adani Energy Solutions Ltd Technical Momentum Shifts Signal Bullish Outlook

Technical Trend and Momentum Overview

Adani Energy Solutions Ltd’s technical trend has recently upgraded from mildly bullish to bullish, reflecting a strengthening price momentum. The daily moving averages have turned bullish, signalling that short-term price action is gaining upward traction. The stock closed at ₹1,005.00 on 20 Feb 2026, down from the previous close of ₹1,035.55, with an intraday range between ₹1,003.30 and ₹1,038.00. Despite this pullback, the 52-week high remains at ₹1,067.30, indicating that the stock is trading near its upper range, while the 52-week low stands at ₹639.35.

Examining the Moving Average Convergence Divergence (MACD), the weekly chart remains mildly bearish, suggesting some short-term caution, but the monthly MACD has turned mildly bullish, indicating improving longer-term momentum. This divergence between weekly and monthly MACD readings suggests that while short-term volatility may persist, the broader trend is gaining strength.

The Relative Strength Index (RSI) on both weekly and monthly timeframes currently shows no clear signal, hovering in neutral territory. This implies that the stock is neither overbought nor oversold, providing room for further price movement in either direction without immediate risk of reversal due to extreme RSI levels.

Bollinger Bands and Volume Indicators

Bollinger Bands on both weekly and monthly charts are signalling bullish momentum. The stock price is trading near the upper band, which often indicates strong buying interest and potential continuation of the upward trend. This is supported by the On-Balance Volume (OBV) indicator, which is bullish on both weekly and monthly scales, confirming that volume trends are in favour of price appreciation.

The Know Sure Thing (KST) oscillator presents a mixed picture: mildly bearish on the weekly timeframe but mildly bullish on the monthly. This aligns with the MACD signals and suggests that while short-term momentum may face some resistance, the medium-term outlook remains constructive.

Dow Theory and Market Sentiment

According to Dow Theory, the weekly trend is mildly bullish, reinforcing the technical upgrade. However, the monthly trend shows no clear direction, indicating that investors should monitor developments closely for confirmation of sustained momentum. The combination of these signals suggests a cautious but optimistic market sentiment towards Adani Energy Solutions Ltd.

Relative Performance and Market Capitalisation

Adani Energy Solutions Ltd holds a Market Cap Grade of 1, indicating a relatively modest market capitalisation within its sector. The company’s Mojo Score has improved to 58.0, upgrading its Mojo Grade from Sell to Hold as of 27 Jan 2026. This reflects a positive reassessment of the stock’s fundamentals and technical outlook by MarketsMOJO’s proprietary scoring system.

When compared to the broader Sensex index, Adani Energy Solutions Ltd has delivered mixed returns over various timeframes. Over the past week, the stock declined by 1.81%, slightly underperforming the Sensex’s 1.41% drop. However, over the past month, the stock surged 10.73%, significantly outperforming the Sensex’s 0.90% decline. Year-to-date, the stock is down 2.36%, but this is still better than the Sensex’s 3.19% fall.

Longer-term returns are particularly impressive. Over the past year, Adani Energy Solutions Ltd has delivered a remarkable 49.78% gain, vastly outpacing the Sensex’s 8.64% rise. Over three years, the stock returned 9.26%, lagging the Sensex’s 35.24%, and over five years, it gained 30.69% compared to the Sensex’s 62.11%. The ten-year return is extraordinary at 3,189.69%, dwarfing the Sensex’s 247.96% gain, highlighting the company’s transformational growth over the decade.

Implications for Investors

The technical indicators suggest that Adani Energy Solutions Ltd is currently in a phase of strengthening momentum, particularly on monthly timeframes. The bullish signals from moving averages, Bollinger Bands, and OBV provide a solid foundation for potential price appreciation. However, the mildly bearish weekly MACD and KST oscillators caution investors to be mindful of short-term volatility and possible pullbacks.

Investors should also consider the stock’s recent downgrade from Sell to Hold in the Mojo Grade, which indicates a more balanced risk-reward profile. The stock’s proximity to its 52-week high suggests that while upside remains, gains may be more measured in the near term. Monitoring volume trends and momentum oscillators will be crucial to confirm sustained bullishness.

Sector Context and Outlook

Operating within the Power sector, Adani Energy Solutions Ltd benefits from the sector’s ongoing transition towards renewable energy and infrastructure modernisation. The company’s technical momentum aligns with broader sectoral tailwinds, which have supported power stocks in recent months. However, sector volatility and regulatory developments remain key factors that could influence price action.

Given the stock’s mixed relative performance over medium-term horizons, investors should weigh sector fundamentals alongside technical signals. The current bullish technical trend suggests that the stock is well positioned to capitalise on positive sector dynamics, but prudent risk management remains essential.

Conclusion

Adani Energy Solutions Ltd’s recent technical parameter changes indicate a shift towards a more bullish momentum, particularly on monthly charts. While short-term indicators show some caution, the overall technical landscape supports a constructive outlook. The upgrade in Mojo Grade from Sell to Hold and a Mojo Score of 58.0 reflect improving fundamentals and market sentiment.

Investors should monitor key technical indicators such as MACD, RSI, Bollinger Bands, and moving averages to gauge momentum sustainability. The stock’s strong long-term returns and sector positioning add to its appeal, though near-term volatility cannot be discounted. A balanced approach combining technical analysis with fundamental insights will be crucial for making informed investment decisions in Adani Energy Solutions Ltd.

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