Adani Green Energy Ltd Sees Mixed Technical Signals Amid Price Momentum Shift

Price Momentum and Recent Performance

On 4 Feb 2026, Adani Green closed at ₹932.25, marking a significant 10.61% gain from the previous close of ₹842.80. The stock’s intraday range was between ₹892.50 and ₹951.35, indicating robust buying interest. However, this rally comes against a backdrop of longer-term underperformance relative to the benchmark Sensex. Year-to-date, Adani Green has declined by 8.13%, while the Sensex has managed a modest 1.74% loss. Over the past year, the stock is down 3.85%, contrasting with the Sensex’s 8.49% gain, and over five years, Adani Green has lagged significantly with a 9.14% loss versus the Sensex’s 66.63% appreciation.

Technical Trend Shift: From Bearish to Mildly Bearish

The technical trend for Adani Green has shifted from a clear bearish stance to a mildly bearish one, signalling a tentative improvement but still cautioning investors. This subtle change is reflected in several key indicators:

• MACD: The Moving Average Convergence Divergence (MACD) remains bearish on the weekly chart, indicating downward momentum in the short term. However, the monthly MACD has turned mildly bullish, suggesting potential for a longer-term recovery if buying interest sustains.
• RSI: The Relative Strength Index (RSI) shows no definitive signal on both weekly and monthly timeframes, hovering in a neutral zone. This implies the stock is neither overbought nor oversold, leaving room for directional movement based on upcoming catalysts.
• Bollinger Bands: Both weekly and monthly Bollinger Bands indicate a mildly bearish stance, with the price currently near the upper band on the daily chart. This suggests some short-term volatility but no clear breakout yet.
• Moving Averages: Daily moving averages remain bearish, with the stock trading below key averages such as the 50-day and 200-day moving averages, signalling resistance to upward momentum in the near term.
• KST Indicator: The Know Sure Thing (KST) indicator is bearish on the weekly chart but mildly bullish on the monthly, mirroring the MACD’s mixed signals and reinforcing the notion of a potential longer-term turnaround.
• Dow Theory: Weekly Dow Theory analysis is mildly bearish, while the monthly trend shows no clear direction, reflecting uncertainty in the broader market sentiment towards the stock.
• On-Balance Volume (OBV): Both weekly and monthly OBV readings show no clear trend, indicating that volume is not decisively supporting either buying or selling pressure at present.

Valuation and Market Capitalisation Context

Adani Green’s market capitalisation grade remains at 1, reflecting a relatively low valuation score compared to peers in the power sector. The company’s Mojo Score stands at 13.0, with a recent downgrade from a ‘Sell’ to a ‘Strong Sell’ rating on 5 Jan 2026. This downgrade underscores the cautious stance adopted by analysts amid the mixed technical signals and subdued fundamental outlook.

Comparative Performance and Sectoral Context

Within the power sector, Adani Green’s recent price action contrasts with broader industry trends. While the sector has seen pockets of strength driven by renewable energy demand, Adani Green’s technical indicators suggest it is yet to fully capitalise on this momentum. The stock’s 52-week high of ₹1,179.20 and low of ₹758.00 highlight a wide trading range, with current prices near the mid-point, reflecting investor indecision.

Technical Outlook and Investor Implications

The mixed signals from MACD, KST, and Bollinger Bands imply that while short-term momentum remains fragile, there is potential for a stabilisation or mild recovery if positive catalysts emerge. The absence of strong RSI signals suggests that the stock is not currently overextended, which could allow for measured gains if buying interest continues. However, the bearish daily moving averages and weekly Dow Theory caution investors to remain vigilant for possible resistance levels near ₹950 to ₹1,000.

Investors should also consider the broader market context, where the Sensex has outperformed Adani Green over multiple time horizons, including one year and five years. This relative underperformance, combined with the ‘Strong Sell’ Mojo Grade, indicates that the stock may face headwinds until clearer technical and fundamental improvements materialise.

Conclusion: Navigating Uncertainty with Caution

Adani Green Energy Ltd’s recent price momentum shift and technical indicator signals present a complex scenario for investors. While the stock has demonstrated resilience with a strong intraday rally, the prevailing mildly bearish technical trend and downgraded Mojo Grade suggest caution. The divergence between weekly and monthly indicators such as MACD and KST points to a potential longer-term recovery, but short-term resistance and bearish moving averages temper optimism.

For investors, this means a careful approach is warranted, balancing the possibility of a technical rebound against the risk of renewed selling pressure. Monitoring key levels around ₹950 and observing volume trends will be critical in assessing the stock’s next directional move. Given the current ‘Strong Sell’ rating and relative underperformance versus the Sensex, a wait-and-watch stance or consideration of superior alternatives within the power sector may be prudent.

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