Adani Power Share Price Flashes Signs of Further Gains

Summary:
• Adani Power share price has had it rough in September, but recent developments signal a potential upturn in the coming days.

Adani Power share price has mostly traded downward since mid-June and it could take some time to overcome the bearish momentum. Despite this, it is still in profit year-to-date, with its gains in 2024 at 26 percent as of this writing. That said, its near-term momentum is weakened by recent losses, which has seen the 50-EMA cross above the 20-EMA price on the daily chart.

However, the current price is above the 20-EMA (Rs 656.28), signaling potential near-term upward momentum in the near-term. That came as Adani share price rose by 2.3 percent on Friday to trade at Rs 665.15. That put it back to the uptrend on the weekly chart, with its gains at +0.2 percent.

Adani Power has recently bagged two major contracts, one in India and the other one in Kenya. The Indian contract will involve supplying thermal and renewable power with a combined capacity of 6,600 MW to Maharashtra State over a 25-year period.

Meanwhile, the Kenyan government awarder the company a $1.3 billion contract to construct power transmission infrastructure. The contract, to be implemented through a Public Private Partnership will be a concession agreement which Adani will implement alongside Africa50, a unit of the African Development Bank.

However, Adani faces underlying risks including emerging resistance to the wider Adani Group’s presence in Kenya. The Indian conglomerate’s proposed $1.85 billion concession deal involving the upgrading of Kenya’s largest international airport opened the lid on its deep-rooted interest in the country’s infrastructure projects.

That has caused uproar among Kenya’s politicians and led to a widely-publicised strike involving the airport’s workers last week. Furthermore, the aviation workers’ strike grounded several flights and halted operations at the Jomo Kenyatta International Airport, a 6 million capacity facility.

Adani Power share price forecast

Adani Power share price is above the Rs 653.25 pivot mark and the RSI momentum indicator favours the upside. Initial resistance will likely be at Rs 670.25, but extended control by the buyers could enable a break above that mark to test Rs 678.20.

On the other hand, a move below Rs 663.25 will swing the momentum towards the downside, with the first support likely to be at 654.35. However, extended control by the sellers could break below that level and test 667.45.