Adani Power Ltd Sees Exceptional Volume Amid Sharp Price Volatility

Trading Volume and Price Action Overview

On 23 Jan 2026, Adani Power witnessed a total traded volume of 3,56,87,090 shares, translating to a traded value of approximately ₹4,806.34 crores. This volume is exceptionally high compared to its recent averages, signalling heightened investor interest and activity. The stock opened at ₹141.00, touched an intraday high of ₹142.90, but also plunged to a low of ₹128.10, marking a wide intraday range of ₹14.80 or roughly 10.5% relative to the opening price.

The last traded price (LTP) settled at ₹133.71, reflecting a 4.76% decline from the previous close of ₹140.92. Notably, the weighted average price for the day was closer to the intraday low, indicating that the bulk of the volume was executed near the lower price levels, a bearish sign suggesting distribution rather than accumulation.

Sector and Market Context

The power generation and distribution sector, to which Adani Power belongs, declined by 3.2% on the same day, underlining sector-wide headwinds. The Sensex fell by 0.77%, while the stock underperformed both the sector and the benchmark index, with a one-day return of -5.24% compared to the sector’s -3.26%. This relative weakness highlights company-specific pressures amid broader market softness.

Adani Power’s market capitalisation stands at a substantial ₹2,57,508.53 crores, categorising it as a large-cap stock. Despite its size, the stock’s liquidity remains robust, with the ability to handle trade sizes of up to ₹3.9 crores based on 2% of its five-day average traded value, making it accessible for institutional and retail investors alike.

Technical and Trend Analysis

The stock’s technical indicators reveal a mixed picture. It remains above its 200-day moving average, a long-term bullish signal, but trades below its 5-day, 20-day, 50-day, and 100-day moving averages, indicating short- to medium-term weakness. The recent price action shows a trend reversal after two consecutive days of gains, with the stock falling sharply on heavy volume.

Intraday volatility was high at 6.08%, calculated from the weighted average price, reflecting significant price swings and uncertainty among traders. The delivery volume on 22 Jan 2026 was 59.03 lakh shares, up 2.45% against the five-day average delivery volume, suggesting rising investor participation and possibly increased selling pressure.

Mojo Score and Rating Update

Adani Power’s MarketsMOJO score currently stands at 51.0, placing it in the ‘Hold’ category. This represents an upgrade from its previous ‘Sell’ rating as of 31 Jul 2025, reflecting some improvement in underlying fundamentals or technical outlook. However, the Mojo Grade remains cautious, signalling that while the stock is no longer a clear sell, it does not yet warrant a buy recommendation.

The company’s market cap grade is 1, indicating its large-cap status but also suggesting limited upside potential relative to smaller, more dynamic stocks. Investors should weigh this rating alongside the recent price weakness and volume surge to gauge risk and reward.

Accumulation vs Distribution Signals

The trading pattern on 23 Jan 2026 suggests distribution rather than accumulation. The heavy volume concentrated near the day’s low price, combined with the sharp price decline, indicates that sellers dominated the session. This is further corroborated by the stock’s underperformance relative to the sector and the broader market.

Rising delivery volumes in the preceding session point to increased investor participation, but the price action implies that this interest may be driven by profit-taking or stop-loss triggers rather than fresh buying. Such dynamics often precede further downside or consolidation phases.

Outlook and Investor Considerations

Adani Power’s current trading behaviour reflects a stock under pressure amid a weakening sector and cautious market sentiment. While the upgrade to a ‘Hold’ rating by MarketsMOJO signals some stabilisation, the technical indicators and volume patterns suggest investors should remain vigilant.

Given the stock’s large-cap status and liquidity, it remains a key player in the power sector, but the recent volatility and distribution signals caution against aggressive accumulation at current levels. Investors may prefer to monitor for confirmation of a sustained trend reversal or wait for clearer signs of accumulation before increasing exposure.

Summary

In summary, Adani Power Ltd’s exceptional volume spike on 23 Jan 2026 was accompanied by significant price weakness and high volatility, reflecting distribution and selling pressure amid a declining power sector. The upgrade to a ‘Hold’ Mojo Grade offers some optimism, but technical signals and volume patterns counsel caution. Investors should closely monitor subsequent trading sessions for signs of accumulation or further deterioration before making decisive moves.

With a market capitalisation exceeding ₹2.57 lakh crores and strong liquidity, Adani Power remains a key stock to watch within the power sector, especially as the broader market navigates volatility and sector rotation.

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