Adani Power’s Volatile Week: -2.59% Price Drop Amid Rising Market Activity

31 August: Intraday Low Amid Price Pressure

Adani Power began the week under significant selling pressure, closing at Rs.198.65, down 6.52% from the previous Friday’s close of Rs.212.50. The stock touched an intraday low of Rs.203.45, reflecting a 4.26% drop from the prior close during the session. This decline was sharper than the Sensex’s 0.48% fall to 36,615.95, signalling notable underperformance. The stock’s technical profile showed weakness as it traded below its short- and medium-term moving averages, though it remained above the 200-day moving average, a key long-term support level.

Market sentiment was cautious, with the Sensex on a three-week losing streak and technical indicators pointing to bearish momentum. Adani Power’s relative weakness against both the sector and benchmark indices suggested immediate selling pressure, compounded by bearish weekly momentum indicators such as MACD and RSI. Despite this, the stock’s longer-term fundamentals remained intact, supported by a strong one-year return of nearly 70%.

1 September: Strong Rebound with Volume and Open Interest Surge

The following day saw a marked reversal as Adani Power surged 2.74% to close at Rs.204.10, reaching an intraday high of Rs.204.80. This 3.55% intraday gain outpaced the Sensex’s modest 0.31% rise and the power sector’s decline, highlighting the stock’s relative strength. Trading volumes soared to 1.13 crore shares, with a traded value of ₹2,285.34 crores, placing the stock among the most actively traded by value and volume on the day.

Open interest in the derivatives segment rose sharply by 14.27% to 85,758 contracts, signalling increased market participation and directional bets. Futures volume reached 37,077 contracts, and the combined futures and options value exceeded ₹24,800 crores, underscoring the stock’s liquidity and investor interest. The delivery volume surged 225.3% compared to the five-day average, indicating strong conviction among long-term holders.

Technically, the stock remained above its 200-day moving average but below shorter-term averages, suggesting resistance ahead. The mojo rating upgrade to ‘Hold’ from ‘Sell’ on 24 August 2026 reflected improving fundamentals and market sentiment. This combination of strong volume, rising open interest, and rating upgrade pointed to a potential accumulation phase despite lingering technical hurdles.

2-3 September: Gradual Gains Amid Mixed Technical Signals

On 2 September, the stock continued its upward trajectory, closing at Rs.207.25, up 1.54%, and on 3 September, it gained a further 1.23% to Rs.209.80, marking the week’s high. These gains occurred despite the Sensex declining 0.44% and 0.08% respectively on those days, underscoring Adani Power’s outperformance. Volume on these days was moderate, with 8.3 lakh and 10.2 lakh shares traded respectively, indicating steady investor interest.

Technical indicators remained mixed. While the stock stayed above the 200-day moving average, it was still below shorter-term averages, suggesting resistance levels that could cap further gains. Weekly momentum indicators such as MACD and Bollinger Bands continued to signal mild bearishness, contrasting with monthly bullish signals. This divergence pointed to a consolidation phase, with the stock navigating between short-term resistance and longer-term support.

4 September: Week Ends with Slight Pullback

The week concluded with a modest decline of 1.33% to Rs.207.00 on 4 September, despite the Sensex gaining 0.19% to 36,385.87. This pullback trimmed some of the week’s earlier gains but left the stock above its intraday lows from the start of the week. Volume remained steady at just over 10 lakh shares, reflecting balanced trading activity. The slight retreat may reflect profit-taking after the midweek rally and the presence of technical resistance from short- and medium-term moving averages.

Daily Price Comparison: Adani Power vs Sensex

Key Takeaways

Positive Signals: The sharp rebound on 1 September, supported by a 3.55% intraday surge and exceptional volume of 1.13 crore shares, demonstrated strong investor interest. The 14.3% rise in open interest in derivatives and a 225.3% increase in delivery volume indicate growing conviction among institutional and long-term investors. The mojo rating upgrade to ‘Hold’ reflects improving fundamentals and a stabilising outlook.

Cautionary Signals: Despite midweek gains, the stock closed the week down 2.59%, underperforming the Sensex’s 1.11% decline. Persistent resistance from short- and medium-term moving averages has capped upside momentum. Weekly technical indicators such as MACD and RSI remain mildly bearish, suggesting consolidation and potential volatility ahead. The slight pullback on 4 September may indicate profit-taking or hesitation amid broader market uncertainty.

Conclusion

Adani Power Ltd’s week was characterised by significant volatility, with a steep initial decline followed by a strong rebound fuelled by robust volume and rising open interest. The stock’s ability to outperform the Sensex on several days amid a cautious market backdrop highlights its relative resilience. However, the inability to sustain gains above key moving averages and the weekly close below the opening price reflect ongoing technical challenges. The mojo upgrade to ‘Hold’ signals a moderate improvement in outlook, but investors should remain attentive to technical developments and broader market trends as the stock navigates this consolidation phase.

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