Adani Power shares hit a lower circuit. Should you buy after the latest correction? | Rare Techy

Market experts maintain that in the near term, Adani Power’s share price will not give a large upside or downside movement but is expected to witness low trading volume leading to some further declines in the counter. However, they maintain that the stock is a quality stock and the theme of strength is expected to attract bulls in the short to medium term and positional investors have a good opportunity to take a position in this multibagger stock in 2022 at a lower level.

Speaking on the recent decline in Adani Power’s share price, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Taking cognizance of high volatility and speculation in Adani Power’s shares, SEBI placed the Adani group’s shares under four-stage ASM surveillance on Monday. This decision by The market regulator squeezed the trading volume of the stock on Tuesday and Wednesday, which caused the circuit to hit the bottom. But, Adani Power is a quality stock and the theme of power will work in the next one to two years due to the demand in the sector. It will rise 5-6 per cent per annum. and no new big investment has happened in the sector in the last decade. So, supply-demand constraints are going to work in favor of quality power stocks like Adani Power.”

Advising positional investors to wait for some further correction in Adani Power shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Adani Power share price is in the range ₹350 up ₹425. Shares have faced strong resistance in ₹425 and it is not possible for stocks to break this barrier after SEBI’s move. Share price changes in Adani Power ₹350 level, which will be a good buying range for short and medium term investors. One can buy these Adani Group shares at ₹335 towards ₹360 range apiece to protect stop loss at ₹320 per share level.”

Adani Power’s share price has changed dramatically ₹372.45 level each, hit the 5 percent lower circuit on Friday’s first day of trading. This is one of the multibagger shares that the Indian stock market has produced in 2022. Adani Power shares have sent 280 percent back to its shareholders in the year-to-date.

Disclaimer: The opinions and recommendations made above are those of individual analysts or brokerage firms, and not of Mint.