Adani Green Energy Ltd Faces Intensified Bearish Momentum Amid Technical Deterioration

Technical Trend Shift and Momentum Analysis

Recent technical assessments indicate that Adani Green Energy’s trend has shifted from mildly bearish to outright bearish. The stock closed at ₹822.80 on 29 Jan 2026, up from the previous close of ₹798.75, yet this short-term uptick belies the underlying weakness in momentum. The 52-week high stands at ₹1,179.20, while the 52-week low is ₹758.00, highlighting a significant range within which the stock has been trading.

Key momentum indicators such as the Moving Average Convergence Divergence (MACD) remain bearish on both weekly and monthly timeframes, signalling sustained downward pressure. The MACD’s negative crossover and widening divergence from the signal line reinforce the bearish momentum, suggesting that the stock’s recent gains may be corrective rather than indicative of a trend reversal.

The Relative Strength Index (RSI), however, remains neutral with no clear signal on weekly and monthly charts. This lack of oversold or overbought conditions implies that the stock is not yet at an extreme valuation level, but the absence of a bullish RSI divergence limits optimism for a near-term recovery.

Moving Averages and Bollinger Bands Confirm Bearish Bias

Daily moving averages have turned bearish, with the stock price trading below key averages such as the 50-day and 200-day moving averages. This alignment typically signals a continuation of downward momentum and acts as resistance to upward price movements. The Bollinger Bands further corroborate this view, showing a mildly bearish stance on weekly charts and a more pronounced bearish signal on monthly charts. The stock price is currently near the lower band on the monthly scale, indicating persistent selling pressure.

Additional Technical Indicators Paint a Cautious Picture

The Know Sure Thing (KST) oscillator, a momentum indicator that aggregates multiple rate-of-change calculations, is bearish on both weekly and monthly timeframes. This suggests that the stock’s momentum is weakening across multiple horizons. Meanwhile, Dow Theory analysis shows no clear trend on the weekly chart and a mildly bearish trend on the monthly chart, reflecting uncertainty but a bias towards downside risk.

On-Balance Volume (OBV) readings also indicate a mildly bearish trend on the monthly scale, implying that volume flow is not supporting price advances. The lack of volume confirmation often precedes further declines, as it suggests that buying interest is insufficient to sustain rallies.

Comparative Performance and Market Context

Adani Green’s recent returns have significantly underperformed the broader market benchmark, the Sensex. Over the past week, the stock declined by 6.46%, while the Sensex gained 0.53%. The one-month return for Adani Green was a steep negative 19.17%, compared to a modest Sensex decline of 3.17%. Year-to-date, the stock has fallen 18.92%, whereas the Sensex has dropped only 3.37%. Over the last year, Adani Green’s return was -16.68%, in stark contrast to the Sensex’s positive 8.49% gain.

Longer-term performance also highlights challenges, with a three-year return of -44.57% against the Sensex’s robust 38.79% gain, and a five-year return of -20.29% compared to the Sensex’s 75.67%. These figures underscore the stock’s persistent underperformance relative to the broader market and sector peers.

Mojo Score and Ratings Update

MarketsMOJO’s latest assessment assigns Adani Green a Mojo Score of 7.0, reflecting a strong sell recommendation. This represents a downgrade from the previous Sell grade, effective from 5 Jan 2026. The Market Cap Grade remains at 1, indicating a relatively low market capitalisation standing within its sector. The downgrade reflects the deteriorating technical indicators and weak price momentum, signalling heightened risk for investors.

Outlook and Investor Considerations

Given the confluence of bearish technical signals, investors should exercise caution. The stock’s failure to break above key moving averages and the persistent negative momentum indicators suggest limited upside in the near term. While the RSI neutrality may imply some room for a technical bounce, the overall trend remains unfavourable.

Investors may wish to monitor the stock for any signs of a sustained reversal, such as a bullish MACD crossover or a break above the 50-day moving average, before considering new positions. Until then, the prevailing technical environment supports a cautious or defensive stance.

Summary

Adani Green Energy Ltd’s technical profile has worsened, with multiple momentum indicators confirming a bearish trend. Despite a modest intraday price increase, the stock remains under pressure from negative MACD, bearish moving averages, and weak volume trends. Its underperformance relative to the Sensex and the downgrade to a Strong Sell rating by MarketsMOJO further reinforce the cautious outlook. Investors should remain vigilant and consider alternative opportunities until a clear technical turnaround emerges.

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