Cup Formation in Adani Power – Potential Breakout Setup!

The daily chart of Adani Power Ltd (NSE: ADANIPOWER) reveals a well-defined Cup formation, signaling potential continuation of the uptrend after a consolidation phase. Price is nearing the rim resistance zone around ₹175–₹180. 🔹 Technical Structure Elliott Wave Outlook: The recent recovery appears to form Wave 3 initiation, following the completion of corrective Wave 2 in the ₹140–₹145 range — a classic bullish setup. MACD Divergence: The MACD histogram shows a bullish divergence, confirming momentum build-up even during price consolidation. AVWAP Zone: Anchored VWAP from the September swing high aligns near ₹155, acting as a strong dynamic support for positional traders. 🔹 Fundamental Snapshot Adani Power remains fundamentally robust with ROCE > 20%, steady profit growth, and strong operational leverage within the energy sector. Its expanding generation capacity and stable debt servicing metrics add confidence for medium-term investors. 📊 Outlook: A sustained close above ₹180 could trigger a measured move towards ₹200–₹210 in the coming weeks, while ₹155 remains a key invalidation level. Technical structure + fundamentals align for a potential momentum breakout.