Adani Green Energy Ltd (AGEL) shares continued their impressive rally on Friday, surging 26% to reach a high of ₹1,369.15. Over just three trading days, the stock has soared 52.23%, driven by renewed investor confidence following clarifications from the Adani Group regarding recent allegations. The surge also buoyed the performance of other Adani Group entities, all trading in positive territory today.
Key Drivers Behind AGEL’s Rally
- Clarification on US Bribery Allegations
The Adani Group issued a statement denying allegations of bribery against Gautam Adani and other executives. It emphasized that no charges were filed, and its portfolio companies have sufficient liquidity to meet debt servicing requirements for at least the next 12 months. - Investor Confidence Restored
Institutional and retail investors appeared reassured by the group’s clarification, resulting in significant buying activity across Adani Group stocks. - Heavy Trading Volume
AGEL witnessed a trading volume of 21.12 lakh shares on BSE, substantially higher than the two-week average of 9.22 lakh shares, with a turnover of ₹262.83 crore.
Market Data and Analysis
- Current Price: ₹1,369.15
- Market Capitalization: ₹2,06,969.68 crore
- Short-Term ASM Framework: Both BSE and NSE have placed AGEL under the short-term Additional Surveillance Measure (ASM) due to high volatility.
Technical Outlook
- Support Levels: ₹1,150 and ₹1,000
- Resistance Levels: ₹1,400 and ₹1,440
- Analyst Insights:
- Osho Krishan (Angel One): ₹1,400 is a key resistance level. A decisive breakout could attract fresh buying, while ₹1,100 and ₹1,000 act as support zones.
- Ravi Singh (Religare Broking): Adani Green could target ₹1,440, with a stop loss at ₹1,150 for traders.
- AR Ramachandran (Sebi-registered analyst): Strong support exists at ₹1,000, with potential to hit ₹1,400 in the near term.
Broader Implications for the Adani Group
The current rally marks a positive shift for the Adani Group, which faced turbulence in January last year following allegations by Hindenburg Research regarding improper use of offshore tax havens. The Group has consistently denied these charges and vowed to pursue legal action.
What’s Next for AGEL?
While the stock has displayed strong momentum, its placement in the ASM framework highlights the potential for volatility. Analysts recommend cautious trading with well-defined stop losses and close monitoring of support and resistance levels.
