scorecardresearchAdani stocks slump for second consecutive session; Adani Enterprises, Adani

Adani stocks slump for second consecutive session; Adani Enterprises, Adani Ports down over 6%

Updated: 28 Mar 2023, 01:05 PM IST
TL;DR.

At 12:28 IST, shares of Adani Transmission Ltd, Adani Power Ltd, Adani Green Energy Ltd, Adani Total Gas Ltd, and Adani Wilmar Ltd were all down 5% each.

On Monday's trading session, all the seven stocks ended in the red (each down over 4%) and lost market cap of over  <span class='webrupee'>₹</span>30,000 crore in total.

On Monday's trading session, all the seven stocks ended in the red (each down over 4%) and lost market cap of over 30,000 crore in total.

Seven Adani Group stocks were trading lower for the second straight session on Tuesday. Adani Enterprises Ltd (down 6.06%) and Adani Ports & Special Economic Zone Ltd (down 7.6%) were the major laggards of Nifty 50.

On Monday's trading session, all the seven stocks ended in the red (each down over 4%) and lost market cap of over 30,000 crore in total. Last week, the seven Adani Group companies saw a net gain of 24, 730 crore in m-cap.

Adani Enterprises' arm AMG Media Networks Ltd completed the acquisition of 49% equity stake in Quintillion Business Media for 48 crore on Monday. Furthermore, the company plans to finish the financial aspects of the Mundra project by the middle of April, and Adani Ports will pay the redemption sum on the due date for the commercial papers (CPs).

Despite the positive development, group companies' share prices continued to decline.

According to Prashanth Tapse, Research Analyst, Sr VP Research, Mehta Equities Ltd, Adani Group stocks are still not out of the wood.

"We remain neutral to negative on the group for the short term," said Tapse.

Technical Views

According to Kapil Shah, Technical Analyst, Emkay Global and Technical Trainer, Finlearn Academy, many Adani group stocks like Adani Port, Adani Enterprises and Adani Green have recovered by around 40% after mayhem in the group. Technically, it can be described as Dead Cat Bounce.

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Seven Adani stock in the last five trading sessions.

Shah said that the recent decline move in Adani Enterprises has started from the previous peak of 2,150 level. The stock has breached the immediate support of 1,650, which indicates bearish continuation sign.

“Adani Port is one of the strongest stock in the group as it has fallen less as compared to other stocks and recovered well from the bottom. Stock has resumed negative move 725 level, which coincides with falling 100 EMA (Exponential Moving Average). Stock has potential support level at 590 level followed by 540,” said Shah.

Further, according to Shah, Adani Green tested downward sloping 54 EMA with formation of bearish engulfing pattern. It indicates potential termination of recent upside move.

 

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Exposure to Adani group.
First Published: 28 Mar 2023, 01:05 PM IST