Adani Power Ltd Falls 6.76% Amid Sharp Volatility and Heavy Selling Pressure

Jan 19: Week Begins with Decline Amid Broader Market Weakness

Adani Power Ltd opened the week at Rs.140.65, down 1.44% from the previous Friday’s close of Rs.142.70. This decline coincided with a Sensex drop of 0.49% to 36,650.97, reflecting cautious investor sentiment amid global and domestic uncertainties. The stock’s volume was moderate at 11.73 lakh shares, indicating steady but subdued trading interest. The initial weakness set the tone for the week’s challenging price action.

Jan 20: Further Price Pressure on Heavy Volume

The downward trend intensified on 20 January, with Adani Power’s share price falling 2.28% to Rs.137.45. This decline outpaced the Sensex’s sharper 1.82% fall to 35,984.65, signalling relative weakness in the stock. Trading volume surged to over 20 lakh shares, suggesting increased selling pressure. The stock’s underperformance amid a broad market sell-off highlighted growing investor caution towards the power sector and the company specifically.

Jan 21: Marginal Recovery Amid Persisting Market Weakness

On 21 January, Adani Power’s share price edged up slightly by 0.15% to Rs.137.65, bucking the Sensex’s 0.47% decline to 35,815.26. This modest gain came on volume of approximately 16.3 lakh shares, reflecting cautious buying interest. The slight rebound suggested some short-term support, but the stock remained below key moving averages, indicating ongoing technical pressure.

Jan 22: Brief Rally Supported by Positive Market Sentiment

The stock rallied 2.29% to Rs.140.80 on 22 January, outperforming the Sensex’s 0.76% gain to 36,088.66. Volume declined to 13.9 lakh shares, signalling a more measured recovery. This bounce followed two days of declines and was likely driven by short-covering and improved market sentiment. However, the stock remained below its previous week’s open, reflecting an overall cautious outlook.

Jan 23: Sharp Intraday Volatility and Exceptional Volume Amid Price Correction

Adani Power faced significant selling pressure on 23 January, closing at Rs.133.05, down 5.50% on the day and marking the week’s low. The stock exhibited extreme intraday volatility, plunging to an intraday low of Rs.128.10, a 9.1% drop from the previous close. Trading volume surged to over 4 crore shares, more than double the average daily turnover, highlighting intense investor activity.

The weighted average price was closer to the day’s low, indicating dominant selling interest. Despite the large volume, the stock underperformed both the Power sector, which declined 3.2%, and the Sensex’s 1.33% fall to 35,609.90. This underperformance reflected company-specific pressures amid a broadly weak market environment.

Technically, the stock remains above its 200-day moving average, a long-term support level, but trades below its 5-day, 20-day, 50-day, and 100-day averages, signalling short- to medium-term weakness. The sharp reversal after two days of gains and the volume spike suggest profit-taking and distribution by investors.

Daily Price Comparison: Adani Power Ltd vs Sensex

Key Takeaways from the Week

Positive Signals: Despite the weekly decline, Adani Power remains above its 200-day moving average, indicating that the long-term uptrend is intact. The rise in delivery volume on 23 January suggests some accumulation by long-term investors, reflecting confidence in the company’s fundamentals over a longer horizon.

Cautionary Signals: The stock underperformed the Sensex by 3.45% over the week and showed relative weakness against its sector peers. The sharp intraday volatility and exceptional volume on 23 January point to distribution and profit-taking, raising concerns about near-term price stability. Trading below multiple short- and medium-term moving averages signals technical pressure and potential further downside risk.

Adani Power’s Mojo Score of 51.0, with a Hold rating, reflects a neutral stance consistent with the mixed signals observed this week. The upgrade from Sell to Hold in July 2025 indicates some improvement in outlook, but the current price action suggests investors remain cautious amid market volatility and sectoral headwinds.

Conclusion

The week ending 23 January 2026 was challenging for Adani Power Ltd, with a 6.76% decline amid broad market weakness and sectoral pressures. The stock’s sharp price correction on the final trading day, accompanied by exceptional volume and volatility, highlights a complex market environment marked by profit-taking and cautious investor sentiment. While the long-term technical support remains intact, short- to medium-term indicators suggest continued pressure. Investors should monitor upcoming trading sessions closely to gauge whether the stock can stabilise above key support levels or face further downside amid ongoing market uncertainties.

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