Adani Enterprises shares trading at one-month low; what should investors do?
Adani Enterprises shares fell up to 6.25% to Rs 2350 on Monday against the previous close of Rs 2506.65 on BSE. The stock is down 38 per cent this year.
- Jun 20, 2023,
- Updated Jun 20, 2023 10:55 AM IST
Shares of Adani Enterprises Ltd are trading at one-month low after a major correction in the previous session. In early trade today, Adani Enterprises stock was trading flat at Rs 2403 on BSE. Market cap of the firm stood at Rs 2.74 lakh crore. Total 1.16 lakh shares changed hands amounting to a turnover of Rs 28.07 crore on BSE. The Adani Group stock slipped over 6% intraday in the previous session amid a weak sentiment in the broader market. The stock is trading at a one-month low. Adani Enterprises stock fell up to 6.25% to Rs 2350 against the previous close of Rs 2506.65 on BSE. The stock is down 38 per cent this year. The stock fell after two days of consecutive gain.
In a year, the Adani Enterprises stock has gained 14.68%. Adani Enterprises stock opened flat at Rs 2505 against the previous close of Rs 2506.65 on Monday. Later, the stock closed 4.10% lower at Rs 2403.80 on BSE. Adani Enterprises' market cap fell to Rs 2.74 lakh crore in the previous trading session. Total 3.42 lakh shares changed hands amounting to a turnover of Rs 83.15 crore on BSE.
ALSO READ: Adani Transmission shares in focus today on nod to raise funds via QIP
In terms of technicals, the relative strength index (RSI) of Adani Enterprises stands at 55.1, signaling neither the stock is overbought nor oversold. The stock has been highly volatile with its beta at 2.1 in the last one year. Adani Enterprises shares are trading higher than the 50 day and 100 day moving averages but lower than 5 day, 20 day and 200 day moving averages.
Here's a look at what experts said on the outlook of the stock.
Abhijeet from Tips2trades said, "Adani Enterprises has strong resistance at Rs 2538 on the Daily charts. A close below the support of Rs 2386 could lead to lower target of Rs 1983 in the near term."
Gaurav Bissa, VP, InCred Equities said, "Adani Enterprises has witnessed a strong recovery from Rs 1000 levels. Amid the intense volatility, the stock managed to cross the previous swing high after a brief period of consolidation. With this, the stock formed higher highs and higher lows which is a characteristic of an uptrend. The stock witnessed a small consolidation breakout above Rs 2200 levels with strong volumes which was followed by a swift upside. Since then, the stock has been in a mild consolidation phase and witnessed some profit booking. The stock is now approaching its 55ema on the daily charts placed around Rs 2200 levels which will also be retest of the consolidation breakout."
"The outlook remains positive on the stock till it holds above Rs 2200 levels with a possibility of an upside Rs 2800," added Bissa.
The stock is trading 43% lower to its 52 week high after the Hindenburg report, which was released on January 24 this year, led to weak sentiment around the Adani Group stocks. In response, the Group called Hindenburg report as maliciously mischievous and unresearched, which, it said, adversely affected the Adani Group, its shareholders and investors.
Adani Group had said that the timing of the Hindenburg report's publication clearly betrays a brazen, mala fide intention to undermine the group's reputation with the principal objective of damaging the follow-on public offering from Adani Enterprises, which was the biggest FPO ever in India.
Shares of Adani Enterprises Ltd are trading at one-month low after a major correction in the previous session. In early trade today, Adani Enterprises stock was trading flat at Rs 2403 on BSE. Market cap of the firm stood at Rs 2.74 lakh crore. Total 1.16 lakh shares changed hands amounting to a turnover of Rs 28.07 crore on BSE. The Adani Group stock slipped over 6% intraday in the previous session amid a weak sentiment in the broader market. The stock is trading at a one-month low. Adani Enterprises stock fell up to 6.25% to Rs 2350 against the previous close of Rs 2506.65 on BSE. The stock is down 38 per cent this year. The stock fell after two days of consecutive gain.
In a year, the Adani Enterprises stock has gained 14.68%. Adani Enterprises stock opened flat at Rs 2505 against the previous close of Rs 2506.65 on Monday. Later, the stock closed 4.10% lower at Rs 2403.80 on BSE. Adani Enterprises' market cap fell to Rs 2.74 lakh crore in the previous trading session. Total 3.42 lakh shares changed hands amounting to a turnover of Rs 83.15 crore on BSE.
ALSO READ: Adani Transmission shares in focus today on nod to raise funds via QIP
In terms of technicals, the relative strength index (RSI) of Adani Enterprises stands at 55.1, signaling neither the stock is overbought nor oversold. The stock has been highly volatile with its beta at 2.1 in the last one year. Adani Enterprises shares are trading higher than the 50 day and 100 day moving averages but lower than 5 day, 20 day and 200 day moving averages.
Here's a look at what experts said on the outlook of the stock.
Abhijeet from Tips2trades said, "Adani Enterprises has strong resistance at Rs 2538 on the Daily charts. A close below the support of Rs 2386 could lead to lower target of Rs 1983 in the near term."
Gaurav Bissa, VP, InCred Equities said, "Adani Enterprises has witnessed a strong recovery from Rs 1000 levels. Amid the intense volatility, the stock managed to cross the previous swing high after a brief period of consolidation. With this, the stock formed higher highs and higher lows which is a characteristic of an uptrend. The stock witnessed a small consolidation breakout above Rs 2200 levels with strong volumes which was followed by a swift upside. Since then, the stock has been in a mild consolidation phase and witnessed some profit booking. The stock is now approaching its 55ema on the daily charts placed around Rs 2200 levels which will also be retest of the consolidation breakout."
"The outlook remains positive on the stock till it holds above Rs 2200 levels with a possibility of an upside Rs 2800," added Bissa.
The stock is trading 43% lower to its 52 week high after the Hindenburg report, which was released on January 24 this year, led to weak sentiment around the Adani Group stocks. In response, the Group called Hindenburg report as maliciously mischievous and unresearched, which, it said, adversely affected the Adani Group, its shareholders and investors.
Adani Group had said that the timing of the Hindenburg report's publication clearly betrays a brazen, mala fide intention to undermine the group's reputation with the principal objective of damaging the follow-on public offering from Adani Enterprises, which was the biggest FPO ever in India.