Adani Green Energy Gains 1.81%: 2 Key Drivers Behind This Week’s Momentum

16 February: Strong Intraday Rally Signals Renewed Buying Interest

Adani Green Energy began the week on a robust note, surging 4.26% to close at Rs.991.05 on 16 February 2026. The stock reached an intraday high of Rs.987.60, reflecting strong buying momentum that outpaced the Sensex’s 0.70% gain. This rally was supported by the stock closing above its 5-day, 20-day, and 50-day moving averages, signalling short- to medium-term bullish momentum. The power sector benchmark was also outperformed, highlighting the stock’s relative strength within its industry.

Despite this positive momentum, the stock remained below its longer-term 100-day and 200-day moving averages, indicating that broader resistance levels have yet to be overcome. The broader market environment was cautiously optimistic, with mega-cap stocks leading gains and the Sensex recovering from an initial dip.

17 February: Open Interest Surge Reflects Bullish Derivatives Activity

The bullish sentiment continued on 17 February as Adani Green Energy’s derivatives market saw a sharp 10.55% increase in open interest, rising to 78,499 contracts. This surge accompanied a 2.55% price gain to Rs.1,016.35, with the stock touching an intraday high of Rs.1,016.70. The rise in open interest alongside increasing prices typically indicates fresh long positions being established, suggesting strong market conviction.

Volume in the derivatives segment was robust, with futures and options contracts valued at approximately ₹1,17,058.75 lakhs. Delivery volumes also surged by nearly 90% compared to the five-day average, underscoring strong investor participation. The stock’s price outperformed both the power sector’s modest 0.14% gain and the Sensex’s 0.32% rise, reinforcing its leadership within the sector.

Technically, the stock traded above all key moving averages, including the 100-day and 200-day, signalling a positive medium- to long-term outlook. However, fundamental ratings remained cautious, with a Mojo Score of 13.0 and a Strong Sell grade, reflecting underlying valuation concerns despite the technical strength.

18 February: Price Correction Amid Profit-Taking

Following two days of strong gains, Adani Green Energy experienced a pullback on 18 February, closing at Rs.999.95, down 1.61%. This correction came despite the Sensex advancing 0.43%, indicating some profit-taking or consolidation by investors. Volume declined to 171,640 shares, reflecting reduced trading activity compared to earlier in the week.

The stock’s retreat below Rs.1,000 may suggest short-term resistance at this psychological level. However, the broader technical picture remained mixed, with the stock still above short-term moving averages but facing pressure from profit-booking. The market’s positive tone contrasted with the stock’s decline, highlighting sector-specific factors or investor caution.

19 February: Further Decline as Market Sentiment Turns Negative

On 19 February, Adani Green Energy’s share price declined further by 2.35% to Rs.976.50, underperforming the Sensex which fell 1.45%. This drop coincided with a sharp market sell-off, as indicated by the Sensex’s negative close. The stock’s volume also decreased to 100,693 shares, suggesting lower liquidity amid the downturn.

The decline brought the stock closer to its week’s low, reflecting a short-term correction phase. The broader market weakness and sector pressures likely contributed to this move, with investors possibly reassessing valuations after the prior rally. Despite this, the stock remained above its previous week’s close, maintaining a net positive weekly performance.

20 February: Week Closes with Mild Loss Amid Market Recovery

The week concluded on 20 February with Adani Green Energy closing at Rs.967.80, down 0.89% on the day but still up 1.81% for the week compared to the previous Friday’s close of Rs.950.55. The Sensex recovered 0.41% on the day, closing at 36,674.32, slightly underperforming the stock’s weekly gain.

Volume picked up modestly to 124,401 shares, indicating renewed interest as the market stabilised. The stock’s price action suggests a consolidation phase after the midweek correction, with investors digesting the week’s volatility and derivatives activity. The broader market’s cautious optimism may provide a foundation for future moves, but the stock’s fundamental rating remains a cautionary factor.

Key Takeaways

Positive Signals: The stock demonstrated strong early-week momentum, with a notable intraday high of Rs.987.60 on 16 February and a sharp open interest surge on 17 February signalling bullish derivatives positioning. Outperformance relative to the Sensex and power sector benchmarks highlights its leadership within the industry. Technical indicators showed the stock trading above key moving averages, supporting short- and medium-term strength.

Cautionary Notes: Despite technical gains, the Mojo Score of 13.0 and a Strong Sell rating reflect fundamental concerns, including valuation risks. The midweek price correction and volume decline suggest profit-taking and consolidation. The sizeable derivatives activity may also introduce volatility, with the potential for speculative swings. Investors should weigh the technical momentum against these fundamental signals.

Conclusion

Adani Green Energy Ltd’s share price exhibited a mixed but overall positive performance during the week of 16 to 20 February 2026, gaining 1.81% and outperforming the Sensex’s 0.39% rise. Early-week strength was driven by robust intraday rallies and a significant increase in derivatives open interest, indicating bullish market positioning. However, the latter half of the week saw price corrections amid broader market volatility and cautious investor sentiment.

The stock’s technical positioning remains constructive, trading above key moving averages, yet fundamental ratings advise prudence. The combination of strong derivatives activity and a cautious fundamental outlook suggests that while momentum exists, risks remain elevated. Market participants should monitor ongoing price action and derivatives trends closely to assess whether the current momentum can be sustained or if volatility will prevail.

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