Key Events This Week
16 Feb: Downgrade to Sell rating amid mixed financials and technical signals
16 Feb: Technical momentum shift observed with heightened volatility
19 Feb: Sharp intraday dip to Rs.140.55 (-2.70%)
20 Feb: Recovery to Rs.142.65 (+1.49%) closing the week on a positive note
16 February: Downgrade and Technical Momentum Shift Set the Tone
On Monday, 16 Feb 2026, Adani Power’s shares opened the week at Rs.139.90, down sharply from the previous Friday’s close of Rs.149.80, reflecting a 6.61% decline. This drop coincided with MarketsMOJO’s downgrade of the stock from Hold to Sell, citing deteriorating financial metrics including a 17.6% decline in PAT for Q3 FY25-26 and rising leverage with a Debt to EBITDA ratio of 3.48 times. Despite the company’s strong long-term growth, these factors raised concerns about near-term profitability and valuation.
The technical outlook also shifted notably on this day. The stock’s momentum indicators showed a move from bullish to mildly bullish, with weekly MACD turning mildly bearish while monthly MACD remained bullish. This divergence signalled a cautious market sentiment amid broader volatility, as the Sensex itself fell by 0.70% to 36,787.89.
17-18 February: Gradual Recovery Amid Mixed Signals
Following the initial setback, Adani Power’s stock price showed resilience on 17 and 18 Feb, rising to Rs.144.35 (+1.09%) and Rs.144.45 (+0.07%) respectively. These gains outpaced the Sensex’s more modest advances of 0.32% and 0.43% on the same days, indicating some investor confidence despite the downgrade. However, trading volumes declined notably to 705,047 shares on 18 Feb, suggesting cautious participation.
Technical indicators remained mixed, with the Relative Strength Index (RSI) hovering in neutral territory and Bollinger Bands signalling bearish pressure on weekly charts but bullishness on monthly charts. This consolidation phase reflected uncertainty about the stock’s immediate direction.
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19 February: Sharp Decline Amid Market Volatility
On 19 Feb, Adani Power’s shares fell sharply by 2.70% to close at Rs.140.55, the lowest level of the week. This decline occurred alongside a significant Sensex drop of 1.45% to 36,523.88, reflecting broader market weakness. The stock’s volume also dipped to 587,337 shares, indicating reduced buying interest amid the negative momentum.
The technical indicators reinforced this bearish sentiment, with the Know Sure Thing (KST) oscillator turning mildly bearish on weekly and monthly charts. Dow Theory analysis showed no clear weekly trend, while monthly trends remained mildly bullish, underscoring the ongoing tension between short-term weakness and longer-term optimism.
20 February: Recovery and Weekly Close on a Positive Note
Adani Power rebounded on the final trading day of the week, gaining 1.49% to close at Rs.142.65. This recovery outperformed the Sensex’s 0.41% rise to 36,674.32, helping the stock finish the week with a net gain of 1.97%. Trading volumes surged back to 1,188,796 shares, signalling renewed investor interest.
The monthly MACD and Bollinger Bands remained bullish, supporting the view that the stock’s longer-term uptrend remains intact despite short-term volatility. Institutional investors increased their stake to 15.06%, reflecting confidence in the company’s fundamentals despite the recent downgrade and technical caution.
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Daily Price Performance vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.142.80 | +2.07% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.144.35 | +1.09% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.144.45 | +0.07% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.140.55 | -2.70% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.142.65 | +1.49% | 36,674.32 | +0.41% |
Key Takeaways
Positive Signals: Adani Power outperformed the Sensex with a weekly gain of 1.97% versus 0.39%, supported by strong long-term growth trends including a 15.83% annualised net sales increase and a 30.46% rise in operating profit. Institutional investors increased their holdings, signalling confidence despite short-term volatility. Monthly technical indicators remain bullish, suggesting the longer-term uptrend is intact.
Cautionary Signals: The downgrade to a Sell rating highlights deteriorating profitability, with PAT down 17.6% in Q3 FY25-26 and rising leverage metrics such as a Debt to EBITDA ratio of 3.48 times. Technical momentum shifted to mildly bullish with weekly MACD bearish and KST oscillator indicating slowing momentum. The sharp intraday dip on 19 Feb and mixed volume trends underscore ongoing uncertainty and potential downside risk in the near term.
Conclusion
Adani Power’s week was characterised by a nuanced balance of resilience and caution. While the stock managed to close higher by 1.97%, outperforming the Sensex, the downgrade and technical momentum shift reflect underlying financial pressures and market volatility. The mixed technical signals across timeframes suggest that short-term traders should exercise caution, whereas long-term investors may find reassurance in the company’s robust growth fundamentals and institutional backing. Overall, the week’s developments underscore the importance of vigilant monitoring amid evolving market dynamics.
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