The share price of Adani Power rose by over 70% in the lastfour trading session. The investors may be wondering the reasons for such aphenomenal performance.
At the time of writing, the last traded price of the shareis Rs 151.2 which is about -0.36% change from previous trading session closing.
According to experts in stock market, there are two main reasonsfor this meteoric rise.
One reason is that the company has made investments in greenenergy and this is attracting value buyers.
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The other reason is that long overdue payments receivablefrom Rajasthan and Maharashtra governments have been received in part.
Besides these two reasons, there is one more contributing factor.The delisting of the company from the exchanges was cancelled and this hasconvinced investors that the share price will rise. This may be so because pricerise happened in the share of Vedanta in a similar scenario.
On guidance how to participate in the share, Mudit Goel, SeniorResearch Analyst at SMC advised that the share price after giving a breakout atRs 100 rose further and broke strong hurdle at Rs 150.
Goel advises that those are holding the share to havestoploss at Rs 150 and target between Rs 185 to Rs 190.
For long-term timeframes, Ravi Singhal of GCL Securitiesadvised that the current prices are not the place to buy. His recommended pricerange for buying is Rs 120 to Rs 150. He sees the share price possibly reachingup to Rs 255 in six to eight months.
He cautions that those buying the shares of Adani Power shouldmaintain long-term perspective and maintain strict stoploss at Rs 99, but thebuying must be done in the price range suggested.