Adani Green Energy Ltd Faces Bearish Momentum Amid Mixed Technical Signals

Technical Momentum Shift and Indicator Analysis

Adani Green’s technical trend has deteriorated from mildly bearish to outright bearish on the weekly timeframe, signalling increased selling pressure. The daily moving averages reinforce this bearish outlook, with the stock trading below key averages, suggesting downward momentum in the short term. The Moving Average Convergence Divergence (MACD) indicator presents a nuanced view: while the weekly MACD remains bearish, the monthly MACD is mildly bullish, indicating that longer-term momentum may still hold some upside potential despite short-term weakness.

The Relative Strength Index (RSI) on both weekly and monthly charts currently shows no definitive signal, hovering in neutral territory. This lack of momentum confirmation from RSI suggests the stock is neither overbought nor oversold, leaving room for further directional movement based on other factors.

Bollinger Bands on weekly and monthly charts are mildly bearish, reflecting increased volatility with a downward bias. The stock’s price action near the lower band on the weekly chart indicates potential support, but the overall band contraction hints at a possible continuation of the bearish trend.

The Know Sure Thing (KST) oscillator aligns with the MACD, showing bearish momentum on the weekly scale but a mildly bullish stance monthly. This divergence between short- and long-term momentum oscillators highlights the stock’s current technical uncertainty.

Additional technical tools such as the On-Balance Volume (OBV) and Dow Theory also reflect a mildly bearish weekly outlook, with no clear trend established monthly. The OBV’s mild bearishness suggests that volume trends are not strongly supporting price advances, which could limit upside potential in the near term.

Price Action and Volatility

On 5 Feb 2026, Adani Green’s price ranged between ₹920.80 and ₹970.95, closing at ₹954.20, up from the previous close of ₹932.25. This intraday volatility of approximately 5.3% reflects active trading interest but also uncertainty among investors. The stock remains well below its 52-week high of ₹1,179.20 and above its 52-week low of ₹758.00, indicating a wide trading range over the past year.

The current price level near ₹954.20 places the stock roughly 19% below its 52-week peak, signalling that despite recent gains, the stock has yet to regain its previous highs. This gap underscores the challenges faced by the company amid sectoral and broader market pressures.

Comparative Returns and Market Context

When benchmarked against the Sensex, Adani Green’s returns reveal a mixed performance. Over the past week, the stock surged 15.97%, significantly outperforming the Sensex’s 1.79% gain. However, this short-term rally contrasts with longer-term underperformance. Over the past month, Adani Green declined 8.14%, worse than the Sensex’s 2.27% fall. Year-to-date, the stock is down 5.97%, compared to the Sensex’s 1.65% decline.

On a one-year basis, Adani Green’s return stands at -2.91%, lagging the Sensex’s robust 6.66% gain. The three-year return of 2.14% pales in comparison to the Sensex’s 37.76%, and over five years, the stock has declined 11.43% while the Sensex soared 65.60%. These figures highlight the stock’s persistent challenges relative to the broader market and sector peers.

Adani Green’s market capitalisation grade remains at 1, reflecting its large-cap status but also signalling limited upside from a valuation perspective. The Mojo Score of 7.0 and a recent downgrade from Sell to Strong Sell on 5 Jan 2026 further underscore the cautious stance adopted by analysts and investors alike.

Technical Ratings and Outlook

MarketsMOJO’s comprehensive technical assessment assigns Adani Green a Strong Sell grade, reflecting deteriorated momentum and bearish signals across multiple indicators. The downgrade from Sell to Strong Sell on 5 Jan 2026 was driven by worsening moving averages and bearish weekly MACD and KST readings. The absence of clear RSI signals and mildly bullish monthly MACD and KST suggest that any recovery may be tentative and short-lived without fundamental catalysts.

Investors should note that the stock’s current technical profile is characterised by short-term bearishness with potential for longer-term consolidation. The daily moving averages’ bearish alignment indicates that immediate price action may continue to face resistance near current levels, especially given the stock’s failure to reclaim its 52-week highs.

Investor Considerations and Final Thoughts

Adani Green Energy Ltd’s current technical landscape suggests caution for investors. The bearish momentum on weekly and daily charts, combined with mixed monthly signals, indicates that the stock may face continued volatility and downward pressure in the near term. The divergence between short- and long-term technical indicators highlights the importance of monitoring both timeframes for potential trend reversals or confirmations.

Given the stock’s underperformance relative to the Sensex and its sector, investors should weigh the risks carefully. The strong sell rating and low market cap grade imply limited near-term upside, while the stock’s recent price action shows some resilience with a 15.97% weekly gain. This volatility may present trading opportunities but also underscores the need for disciplined risk management.

Long-term investors may want to watch for a sustained improvement in monthly MACD and KST indicators, alongside a break above key moving averages, before considering accumulation. Until then, the technical signals favour a cautious or defensive stance.

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