Adani Power share price extends rally, up 9% in two sessions; Should you buy?

Adani Power share price rallied nearly 3% on Thursday, extending its gains for the second consecutive session. The Adani group stock gained as much as 2.93% to ₹512.30 apiece on the BSE.

Adani Power shares have rallied approximately 9% in two trading sessions. Today’s gains in Adani Power stock price follows the 5.8% rally in Tuesday’s (February 25) session. The Indian stock market was shut on Wednesday (February 26) on account of Mahashivratri.

Earlier this week, Adani Power had informed that it received approval from the committee of creditors for acquiring Vidarbha Industries Power Ltd (VIPL), a subsidiary of Reliance Power, Anil Ambani’s Reliance Group firm.

“This is to inform that the Committee of Creditors (COC) of Vidarbha Industries Power Limited (VIPL), a company undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016 (IBC) has approved the Resolution Plan submitted by Adani Power Limited (APL). In this regard, APL has received a Letter of Intent (LOI) from the Resolution Professional (RP) on February 24, 2025,” Adani Power said in a stock exchange filing on February 24.

VIPL owns and operates a 2×300 MW (600 MW) thermal power plant at MIDC Industrial Area, Butibori, Nagpur, Maharashtra, it said.

The implementation of Adani Power’s resolution plan is subject to the terms of the LOI (letter of intent) and requisite approvals, including from the National Company Law Tribunal, Mumbai.

Adani Power Stock Price Trend

Adani Power share price is down 5% on a year-to-date (YTD) basis and has fallen over 23% in the past six months. The Adani group stock has dropped 12% in one year, but has delivered multibagger returns of nearly 260% in two years.

On the technical charts, Adani Power share price has tested a key breakout level and analysts believe the stock is poised for a strong upside.

“Adani Power share price recently tested the critical breakout level of ₹510, coinciding with the falling 50-day EMA (Exponential Moving Average), which has been acting as a major resistance. The Adani Group stock witnessed a surge in trading volumes — over 4x the 50-day average, signaling strong buying interest. A break and sustained move above ₹510 is likely to trigger a fresh rally, with the next target set around ₹589,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

Given the strong volume participation and technical setup, Jain believes Adani Power stock appears poised for an upside breakout in the coming sessions.

“Traders should closely watch price action for confirmation, as a successful breach could unlock significant bullish momentum,” Jain said.

At 10:55 AM, Adani Power shares were trading 0.57% higher at ₹500.55 apiece on the BSE. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.