Adani Enterprises rises 20%; shares locked in at upper circuit

Shares of Adani Enterprises Ltd hit 20% upper circuit on Tuesday trade. The stock has seen sharp moves in the last couple of weeks based on the ongoing fiasco with Adani Group company and Hindenburg Research.

According to analysts, in the last couple of trading sessions it has seen sharp bounce from lower levels and today it's up around 20%, despite such strong bounce the indicators are oversold as recently the stock prices have corrected from the levels of around 4,000 to recent low around 1,000. Hence current bounce may continue with 2,000 as immediate resistance.

"The moves have been speculative rather than trending hence technical view on such counters are not possible," said an analyst.

At 10:22 IST, the stock rose 10% during the intra-day trade, and at 10:41 IST, the stock hit 20% upper circuit.

On the fundamental front, robust Q3FY23 earnings of Adani Transmission and the news of promoters of Adani Group are in the process of prepaying loans worth $1.11 billion, prior to their maturity in September, added to the positive sentiment of the stock.

On the backdrop of Q3FY23 earnings season, the street will watch out for Adani Ports, Adani Green and Ambuja Cements results, which is scheduled for today.

Ever since the release of the Hindenburg report, the stock prices of Adani shares have been under pressure.

The Indian group's flagship company on called off its ₹20,000-crore public offering on the backdrop of Hindenburg's criticisms.

Hindenburg Research accused the Indian giant of participating in a decades-long plan to manipulate stock prices and commit accounting fraud.

Also Read: Adani Enterprises slips over 8% in Monday's trade