Adani Power Share Price Forecast: The Bottom Is Still Far Away

Summary:
• Technical analysis suggests that Adani Power share price could dip another 60% from the current level of ₹182.35.

The Adani Group, a conglomerate based in India, has recently been under fire from short-seller firm Hindenburg. This has triggered a bloodbath in the Adani Power share price, as well as in the prices of other Adani companies. The major cause of this sell-off is the group’s debt-driven expansion. Recently, Adani Enterprises also suddenly canceled its ₹20,000 crore follow-on public offer (FPO), which would have issued additional shares to investors.

Due to recent market instability, the controlling shareholders of the Adani Group have decided to repay loans totaling $1.11 billion before their due date in September 2024. These loans were secured with shares from different Adani companies.

Adani Wilmar Share Price Target

Despite the recent attack by short-seller Hindenburg on the Adani Group, William Simadiputra from DBS Group Research has maintained his positive outlook and “buy” recommendation for Wilmar International. Adani Wilmar has a joint venture with the Adani Group listed in India, but Simadiputra believes that the short-selling attack will not have any impact on the value of Wilmar, which is listed in Singapore as a palm oil company.

Technical analysis of Adani Wilmar share price shows that the bottom is still very far away. In the short term, the price could retest the ₹300 level. Also, I won’t be surprised if AWL retests its IPO price of ₹230. Adani Wilmar share price has lost 34% of its value in the last 10 days.

The Adani Power share price has dropped 33.5% since the release of the Hindenburg Research report. Technicals suggest that the Adani Power share price has further downside before recovering. In the near term, I expect the price to dip to ₹137 level. However, In case of a deeper correction, bears can also target the 24th August 2021 low of ₹70.35 in 2023.

In conclusion, the Adani Group is currently facing challenges due to its debt-driven expansion, market volatility, and a feud with short-seller firm Hindenburg. Despite this, some analysts remain optimistic about the future prospects of companies associated with the Adani Group, such as Wilmar International.