This Adani Group’s stock surges 17% in a week. Should you buy now? | Rare Techy

According to stock market experts, Adani Power’s subsidiary and Gujarat Urja Vikas Nigam have agreed to settle their dispute, which is a relief for the company. In its latest exchange communication, the Adani group company informed about the development which was triggered by fresh buying at the counter leading to a sharp reverse movement in the multibagger stock. Experts went on to add that the Adani Power stock price looks like it is in a bull phase after giving a breakout ₹124.40 session on Wednesday.

Speaking on the reasons for the rise in Adani Power’s share price; Ravi Singhal, Vice Chairman at GCL Securities said, “Adani Power (Mundra), a subsidiary of Adani Power, and Gujarat Urja Vikas Nigam Ltd have agreed to resolve their dispute related to the power purchase agreement and revive the canceled bid. This is a big fundamental development for company, which caught the attention of the bulls and they do bulk buy at the counter.

Expect further rally in Adani group shares this; Anuj Gupta, Vice President at IIFL Securities said, “The stock has entered a bullish phase after giving a fresh breakout at ₹124.40 level on Wednesday. It is facing a minor obstacle ₹135.50 level. In breach of this resistance, multibagger stocks are expected to taste ₹160 levels in the near term”.

Advising intraday traders to buy Adani Power shares; Sumeet Bagadia, Executive Director at Choice Broking said, “Adani group shares touched their 4-month high on Wednesday after breaching their 3-month high. ₹124.40 each level. It still looks positive on the chart pattern and one can add this stock in one’s portfolio at CMP for short term targets directly from ₹140 levels. However, one must keep the stop loss tight ₹110 levels while taking a position in this Adani group stock.

Advising positional investors to buy this multibagger stock and hold till the end of this financial year, Ravi Singhal of GCL Securities said, “The stock is expected to rise to ₹175 by the end of March 2022.”

Recently Adani Power informed the Indian stock exchanges about the Deed of Settlement signed by Adani Power (Mundra) Limited (a wholly owned subsidiary of the Company) and Gujarat Urja Vikas Nigam Ltd saying, “We would like to inform that Adani Power (Mundra) Ltd. ( “APMuL. “), a wholly owned subsidiary of the Company, and Gujarat Urja Vikas Nigam Ltd. (“GUVNL”), have agreed to: (a) resolve all disputes pertaining to the Power Purchase Agreements (“PPAs”) dated 2nd February 2007 (” Bid -2 PPA”) and 6th February 2007 (“Bid-1 PPA”), and Supplementary PPAs (“SPPAs”) dated 5th December 2018 are connected to both of these PPAs, in a comprehensive and friendly manner and backward all related to pending cases / petitions ., the claims filed by the two parties against each other; and (b) revive the canceled Offer-2 PPA and the connected SPPA, which ended with the decision of the honorable Supreme Court on July 2, 2019 and in turn, APMuL and GUVNL for not claiming any compensation in terms of judgment related to the termination of Offer-2 PPA.”

Adani Power stock price history

Adani Power stock is one of the multibagger stocks as it has given almost 130 percent return to the shareholders in the past one year. In this period, the Adani group’s shares surged from ₹54.25 to ₹125.60 level on NSE.

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