Adani Green Energy Ltd Falls 16.97%: 5 Key Factors Driving the Sharp Weekly Decline

Jan 24 2026 12:04 PM IST
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Adani Green Energy Ltd experienced a turbulent week from 19 to 23 January 2026, with its share price plunging 16.97% to close at Rs.772.10, significantly underperforming the Sensex’s 3.31% decline. The stock faced sustained selling pressure amid heavy trading volumes, sharp open interest surges, and a downgrade to a Strong Sell rating, reflecting mounting financial and technical challenges.




Key Events This Week


19 Jan: Stock opens at Rs.913.20, down 1.80%


20 Jan: Intraday low hit at Rs.882 amid price pressure


21 Jan: Sharp open interest surge of 15.17% amid downtrend


22 Jan: Intraday high of Rs.904 with 3.59% rebound


23 Jan: Heavy institutional sell-off drives 14.63% drop to Rs.772.10





Week Open
Rs.929.95

Week Close
Rs.772.10
-16.97%

Week High
Rs.913.20

vs Sensex
-13.66%



19 January 2026: Weak Start Amid Broader Market Decline


Adani Green Energy opened the week at Rs.913.20, down 1.80% from the previous close, mirroring the Sensex’s 0.49% decline to 36,650.97. The stock’s volume was moderate at 1,08,734 shares, reflecting cautious investor sentiment amid early week market jitters. This initial weakness set the tone for the week’s downward trajectory.



20 January 2026: Intraday Low and Continued Price Pressure


The stock faced intensified selling pressure on 20 January, hitting an intraday low of Rs.882, a 3.42% drop from the prior close. It closed at Rs.883.30, down 3.27%, underperforming the Sensex’s sharper 1.82% fall. This marked the eighth consecutive day of losses, with the stock trading below all key moving averages, signalling sustained bearish momentum. The decline was exacerbated by sectoral weakness and a deteriorating technical setup.




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21 January 2026: Surge in Open Interest Amid Persistent Downtrend


Despite the ongoing decline, derivatives market activity surged with open interest rising 15.17% to 73,300 contracts. Futures volume reached 39,433 contracts, with a combined futures and options notional value exceeding ₹11,000 crores. The stock closed at Rs.879.60, down 0.42%, continuing to trade below all major moving averages. The increase in open interest alongside falling prices suggests fresh short positions and bearish sentiment dominating the market.



22 January 2026: Short-Lived Rebound with Intraday High


Adani Green Energy staged a brief recovery on 22 January, surging 3.59% intraday to Rs.904, outperforming both the Power sector and the Sensex, which rose 0.76%. This rebound followed nine consecutive days of decline, reflecting a potential technical bounce amid volatile trading. However, the stock remained below key moving averages and retained a Strong Sell Mojo Grade, indicating that the medium-term downtrend persisted despite the short-term strength.



23 January 2026: Sharp Decline Amid Heavy Institutional Selling and Put Option Surge


The final trading day of the week saw a dramatic sell-off, with the stock plunging 14.63% to close at Rs.772.10 on heavy volume of 19,50,322 shares. Intraday volatility was elevated at 10.92%, with the price touching a low of Rs.785.0. Institutional selling intensified, reflected in a 36.41% drop in delivery volume and the stock’s status as one of the most actively traded equities by value, with ₹1,143.77 crores exchanged. Put option activity surged, particularly at the 800 strike price, signalling heightened bearish hedging ahead of the 27 January expiry. The stock’s Mojo Score remained at a low 21.0, with a Strong Sell rating reaffirmed.




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Daily Price Comparison: Adani Green Energy Ltd vs Sensex


















































Date Stock Price Day Change Sensex Day Change
2026-01-19 Rs.913.20 -1.80% 36,650.97 -0.49%
2026-01-20 Rs.883.30 -3.27% 35,984.65 -1.82%
2026-01-21 Rs.879.60 -0.42% 35,815.26 -0.47%
2026-01-22 Rs.904.40 +2.82% 36,088.66 +0.76%
2026-01-23 Rs.772.10 -14.63% 35,609.90 -1.33%



Key Takeaways


1. Sustained Downtrend: The stock endured a steep 16.97% weekly decline, significantly underperforming the Sensex’s 3.31% fall, reflecting persistent bearish sentiment and technical weakness.


2. Heavy Institutional Selling: The sharp drop on 23 January amid record volumes and value turnover indicates strong institutional exit, exacerbating price pressure.


3. Elevated Derivatives Activity: Surging open interest and put option volumes highlight increased bearish positioning and hedging ahead of expiry, signalling market expectations of further downside.


4. Technical Weakness: Trading below all major moving averages throughout the week and a Strong Sell Mojo Grade reinforce the negative medium-term outlook.


5. Volatility and Market Uncertainty: Intraday volatility peaked at over 10%, with wide price swings reflecting unsettled investor sentiment amid sectoral and company-specific challenges.



Conclusion


Adani Green Energy Ltd’s performance during the week of 19 to 23 January 2026 was marked by sharp declines, heavy trading volumes, and deteriorating technical and fundamental indicators. Despite a brief rebound on 22 January, the stock succumbed to intense selling pressure, culminating in a 16.97% weekly loss and a reaffirmed Strong Sell rating. The surge in derivatives activity, particularly put options, underscores growing bearish sentiment and hedging demand as expiry approaches. Investors should remain cautious given the stock’s proximity to multi-month lows, ongoing sectoral headwinds, and the absence of clear catalysts for reversal in the near term.






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