Adani Power Ltd Sees Exceptional Volume Surge Amid Strong Price Gains

Exceptional Volume and Price Performance

On 3 February 2026, Adani Power Ltd (symbol: ADANIPOWER) recorded a total traded volume of 2.89 crore shares, translating to a traded value of approximately ₹415.93 crores. This volume figure is notably high, positioning the stock among the top volume gainers in the power sector on the day. The stock opened at ₹145.00, a gap-up of 7.73% from the previous close of ₹134.60, and touched an intraday high of ₹149.04, marking a 10.73% increase from the prior day’s close. The last traded price (LTP) stood at ₹147.69 as of 11:34 AM IST, reflecting a day gain of 9.25%.

The weighted average price indicates that a significant portion of the volume was traded closer to the day’s low price of ₹140.60, suggesting some profit booking or cautious accumulation at elevated levels. Nevertheless, the stock’s ability to sustain gains above multiple moving averages—including the 5-day, 20-day, 50-day, 100-day, and 200-day—signals robust technical strength and positive momentum.

Sector and Market Context

The power generation and distribution sector gained 4.57% on the same day, with Adani Power outperforming the sector by 5.02%. The broader Sensex index rose by 3.06%, underscoring the stock’s relative strength amid a generally positive market environment. Adani Power’s 1-day return of 9.55% significantly outpaced both the sector and benchmark indices, highlighting strong investor interest and bullish sentiment.

Despite this, investor participation in terms of delivery volume has shown signs of moderation. The delivery volume on 2 February was 52.75 lakh shares, down by 29.29% compared to the 5-day average delivery volume. This decline may indicate a shift towards short-term trading or speculative activity rather than sustained accumulation by long-term investors.

Fundamental and Rating Overview

MarketsMOJO currently assigns Adani Power a Mojo Score of 42.0, with a Mojo Grade of 'Sell' as of 31 July 2025, downgraded from a previous 'Hold' rating. The market capitalisation stands at a substantial ₹2,75,000 crores, categorising the company as a large-cap stock. The low Market Cap Grade of 1 reflects concerns about valuation or other fundamental parameters relative to peers.

While the stock’s recent price action is encouraging, the downgrade and modest Mojo Score suggest caution. Investors should weigh the technical strength against fundamental challenges and sector dynamics before making investment decisions.

Volume Surge Drivers and Market Sentiment

The surge in Adani Power’s volume can be attributed to several factors. The stock’s recent consecutive gains—rising 10.95% over the last two trading sessions—have attracted momentum traders and short-term investors seeking to capitalise on the upward trend. The gap-up opening on 3 February further fuelled buying interest, signalling positive market sentiment.

However, the weighted average price data, showing heavier volume near the day’s low, suggests that some investors are taking profits or entering cautiously. This mixed volume pattern may reflect a distribution phase where early buyers are offloading shares to new entrants, a common phenomenon in stocks experiencing rapid price appreciation.

Technical Indicators and Moving Averages

Adani Power’s trading above all key moving averages is a bullish technical indicator. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages provide layered support levels, reducing the risk of a sharp correction in the near term. Such alignment often attracts institutional investors and algorithmic trading strategies, which rely on technical signals for entry and exit points.

Nevertheless, the recent downgrade to a 'Sell' rating by MarketsMOJO tempers enthusiasm. The Mojo Grade change on 31 July 2025 reflects deteriorating fundamentals or valuation concerns that may weigh on the stock’s medium to long-term outlook.

Liquidity and Trading Size Considerations

Liquidity remains adequate for Adani Power, with the stock’s traded value supporting a trade size of approximately ₹4.64 crores based on 2% of the 5-day average traded value. This level of liquidity ensures that large institutional trades can be executed without significant price impact, an important consideration for portfolio managers and high-net-worth investors.

Accumulation and Distribution Signals

Despite the high volume and price gains, the decline in delivery volume by nearly 30% compared to the 5-day average suggests a nuanced picture. Lower delivery volumes often indicate that a larger proportion of trades are intraday or speculative, rather than long-term accumulation. This could signal distribution by some investors, who may be locking in profits after recent gains.

Investors should monitor subsequent trading sessions for confirmation of sustained accumulation or further distribution. A rebound in delivery volumes alongside price appreciation would strengthen the case for a durable uptrend, while continued low delivery volumes may warn of potential volatility or a pullback.

Outlook and Investor Considerations

Adani Power’s recent trading activity highlights the stock’s appeal to momentum investors amid a broadly positive sectoral backdrop. However, the fundamental downgrade and mixed volume signals counsel prudence. Investors with a medium to long-term horizon should carefully analyse the company’s financial health, valuation metrics, and sector prospects before committing fresh capital.

Short-term traders may find opportunities in the stock’s volatility and technical strength, but should remain alert to potential profit-taking and market corrections. The stock’s large-cap status and liquidity profile make it suitable for institutional participation, but also subject it to sharper moves on news or market sentiment shifts.

In summary, Adani Power Ltd’s exceptional volume surge and price rally on 3 February 2026 reflect a complex interplay of momentum, technical strength, and cautious investor behaviour. While the stock outperforms its sector and benchmark indices, the downgrade and delivery volume trends suggest a watchful approach is warranted.

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