Adani Power Surges 12.91% in a Week: 5 Key Drivers Behind the Rally

2 February 2026: Weak Market Start Sets Stage for Rebound

Adani Power began the week at ₹134.55, down 0.48% from the previous close, mirroring the broader market’s weakness as the Sensex declined 1.03% to 35,814.09. Trading volume was moderate at 18.49 lakh shares, reflecting cautious investor sentiment amid a volatile environment. The stock’s subdued start contrasted with the subsequent strong rebound, setting a base for the week’s rally.

3 February 2026: Gap Up and Volume Surge Fuel Strong Outperformance

On 3 February, Adani Power demonstrated remarkable strength, opening with a 7.77% gap up to ₹145 and reaching an intraday high of ₹149.04. The stock closed at ₹143.65, up 6.76% on the day, significantly outperforming the Sensex’s 2.63% gain and the power sector’s 2.74% advance. Exceptional trading volume of 41.24 lakh shares and a traded value of approximately ₹415.93 crore underscored heightened market interest.

The stock traded above its 5-day, 20-day, 50-day, and 200-day moving averages, signalling strong technical momentum despite resistance near the 100-day average. Delivery volumes, however, declined by 29.29% compared to the five-day average, suggesting a mix of speculative trading and cautious accumulation.

4 February 2026: New Intraday Highs and Institutional Buying

Adani Power continued its upward trajectory on 4 February, hitting an intraday high of ₹155.00 and closing at ₹155.20, a 8.04% gain from the previous day. The stock outperformed the power sector’s 2.07% gain and the Sensex’s slight decline of 0.13%. Trading volume surged to 92.10 lakh shares with a traded value exceeding ₹7,140 crore, reflecting strong institutional participation and liquidity.

Delivery volumes on 3 February had increased by 131.59%, indicating genuine accumulation by long-term investors. The stock traded above all key moving averages, including the 100-day and 200-day, signalling robust technical strength. Despite this, the MarketsMOJO mojo grade remained at 'Sell' with a score of 42.0, reflecting valuation concerns and recent financial headwinds.

5 February 2026: Technical Momentum Upgrade and Strong Returns

On 5 February, Adani Power’s technical momentum shifted from mildly bullish to bullish, supported by an 8.04% day gain and a close at ₹155.20. The stock reached an intraday high of ₹156.00, maintaining its position well above all major moving averages. Mixed technical indicators such as a mildly bearish weekly MACD but bullish monthly MACD suggested strengthening longer-term momentum despite short-term caution.

The upgrade in mojo grade from 'Sell' to 'Hold' by MarketsMOJO reflected improved financial and technical factors, including a strong cash position and increased institutional holdings. However, recent quarterly results showed a 17.6% decline in profit after tax and increased leverage, tempering enthusiasm.

6 February 2026: Week Closes with Minor Consolidation

Adani Power ended the week at ₹152.65, down slightly by 0.49% from the previous close, consolidating recent gains amid a broadly stable market. The Sensex closed marginally higher by 0.10% at 36,730.20. Trading volume tapered to 9.84 lakh shares, reflecting a pause after a strong rally. The stock’s weekly gain of 12.91% significantly outpaced the Sensex’s 1.51%, underscoring its relative strength.

Key Takeaways

Strong Outperformance: Adani Power’s 12.91% weekly gain dwarfed the Sensex’s 1.51%, driven by robust intraday highs and sustained buying interest.

Volume and Liquidity: Exceptional volume surges on 3 and 4 February, with traded values exceeding ₹400 crore and ₹7,000 crore respectively, highlighted strong institutional participation and market interest.

Technical Momentum: The stock’s shift from mildly bullish to bullish technical momentum, supported by trading above all major moving averages, underpinned the rally despite mixed short-term indicators.

Rating Upgrade: MarketsMOJO’s upgrade from 'Sell' to 'Hold' on 4 February reflected improving fundamentals and technicals, though valuation and leverage concerns remain.

Financial Caution: Recent quarterly results showed a 17.6% PAT decline and increased debt ratios, signalling caution despite strong price action.

Conclusion

Adani Power Ltd’s week was characterised by a powerful rally fuelled by strong technical momentum, exceptional trading volumes, and a significant upgrade in investment rating. The stock’s ability to outperform both its sector and the broader market amidst mixed financial signals highlights a nuanced market perception balancing optimism with caution. While the recent upgrade to 'Hold' signals improved confidence, investors should remain mindful of the company’s elevated leverage and recent earnings softness. The stock’s sustained gains above key moving averages and growing institutional interest suggest a positive near-term outlook, but ongoing monitoring of financial performance and market conditions will be essential to assess the durability of this rally.

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