Trading Activity and Volume Analysis
On 4 February 2026, Adani Power witnessed a total traded volume of 3.56 crore shares, translating to a traded value of approximately ₹534.40 crores. This volume represents a significant spike compared to its recent averages, with delivery volume on 3 February rising by 131.59% against the five-day average, reaching 1.64 crore shares. Such elevated participation indicates strong investor conviction and a possible shift in market sentiment towards the stock.
The stock opened at ₹145.00, touched an intraday high of ₹155.00, and closed at ₹153.94 by 12:29 PM IST, marking a day gain of 6.96%. This intraday high represents a 7.92% increase from the previous close of ₹143.62. Notably, the weighted average price suggests that a larger volume of shares traded closer to the lower price band, hinting at some profit booking or cautious buying at elevated levels.
Price Momentum and Moving Averages
Adani Power has demonstrated consistent upward momentum, having gained 15.09% over the past three consecutive trading sessions. The stock is trading above its key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – underscoring a strong bullish trend. This technical positioning often attracts momentum traders and institutional investors looking for sustained price appreciation.
In comparison, the Power Generation and Distribution sector gained 2.86% on the same day, while the Sensex rose marginally by 0.11%. Adani Power’s outperformance by 3.75% relative to its sector highlights its relative strength within the industry.
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Accumulation and Distribution Signals
The surge in delivery volume alongside rising prices suggests accumulation by investors rather than mere speculative trading. Delivery volume, which reflects shares actually taken into investors’ demat accounts, is a key indicator of genuine buying interest. The 131.59% increase in delivery volume compared to the recent average points to strong hands accumulating the stock.
Moreover, the stock’s liquidity profile supports sizeable trades, with the ability to handle trade sizes of up to ₹7.17 crores based on 2% of the five-day average traded value. This liquidity ensures that institutional investors can enter or exit positions without significant price impact, further encouraging participation.
Fundamental and Market Context
Adani Power Ltd, a large-cap company with a market capitalisation of ₹2,95,827.22 crores, operates in the power sector, specifically power generation and distribution. Despite the recent positive price action, the company’s Mojo Score stands at 42.0 with a Mojo Grade of Sell, downgraded from Hold on 31 July 2025. This rating reflects underlying concerns about valuation or fundamentals despite the current bullish price momentum.
Investors should weigh the technical strength and volume surge against the fundamental caution signalled by the Mojo Grade. The stock’s recent outperformance relative to the sector and Sensex may be driven by short-term factors such as market sentiment, news flow, or sector rotation rather than a fundamental turnaround.
Sectoral and Broader Market Comparison
The power sector has shown resilience with a 2.86% gain on the day, supported by improving demand outlook and government initiatives to boost power infrastructure. Adani Power’s outperformance indicates it is capturing a disproportionate share of investor interest within the sector. However, the broader market’s muted 0.11% rise in the Sensex suggests that the rally is sector-specific rather than market-wide.
Investors should monitor whether this volume and price strength can be sustained amid broader market conditions and sectoral developments. A sustained uptrend supported by strong volume and improving fundamentals could signal a favourable investment opportunity, whereas a divergence between price and fundamentals may warrant caution.
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Investor Takeaway and Outlook
Adani Power’s exceptional volume surge coupled with strong price gains over recent sessions highlights a notable shift in market dynamics. The stock’s ability to outperform its sector and the broader market, while maintaining liquidity and rising delivery volumes, points to genuine accumulation by investors.
However, the current Mojo Grade of Sell and relatively modest Mojo Score suggest that investors should exercise caution and conduct thorough due diligence before committing fresh capital. Monitoring upcoming quarterly results, sectoral policy changes, and broader market trends will be crucial to assess whether the current momentum can translate into sustainable long-term gains.
For traders, the stock’s strong technical positioning above key moving averages offers potential short-term trading opportunities, but risk management remains essential given the mixed fundamental signals.
Summary
In summary, Adani Power Ltd’s trading activity on 4 February 2026 was characterised by a significant volume spike and price appreciation, outperforming both its sector and the Sensex. The surge in delivery volumes and sustained gains over three days indicate accumulation, supported by strong liquidity. Despite this, fundamental caution remains due to the current Mojo Grade Sell rating. Investors should balance technical momentum with fundamental analysis to make informed decisions in this large-cap power stock.
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