Israel-Hamas war: Adani Ports shares drop 4%; here're support, resistance levels for Adani stock

Shares of Adani Ports and Special Economic Zone tumbled more than 4 per cent during the early trading session amid the rising global geopolitical concerns triggered by a surprise attack by Hamas group, leading to war crisis between Israel and Palestine in the Middle-East. Adani Ports had acquired Israel's Haifa port earlier in the year. Haifa Port was shut down because Israel declared a state of War for the first time since 1973. Adani Group's Port entity had strategically acquired Haifa Port in a $1.2 deal last year, which was completed earlier this year. Shares of Adani Ports crashed more than 4 per cent to Rs 794.15 on Monday, compared to its previous close at Rs 830.55 on Friday. The company was commanding a total market capitalization of Rs 1.75 lakh crore as of the data by BSE. The stock has tumbled over 10 per cent in the last one month. Haifa marks India's presence in the Mediterranean region and it is crucial for reinforcing India's rising geopolitical stature in the Middle East. The shutdown of Haifa Ports will have a material impact on the business of Adani Ports, denting the sentiments for the company in the coming days. Analysts reading the technical charts suggest that the stock may be headed for some more pressure as selling pressure persists. They believe that chart-pattern as of now is not distorted and is signaling positivity in the medium run. However, traders should keep an eye on support level before taking any position. VLA Ambala, Co-Founder at Stock Market Today said that situations like war put extra pressure on logistics and port businesses. In the short term horizon, there is a possibility that it could see more dip but in the longer term, Ambala is bullish on it and particularly in the business segment. "Fresh buying could be initiated in this above Rs 822-level and we can set a target of Rs 830 to Rs 1,050 these are the medium-term targets for this stock. Keep stop loss below Rs 768 when you are buying it above the given level. Keep in mind, as of now more possible so wait for the correct time to initiate fresh long positions in it", VLA Ambala suggested. Adani Ports has broken its bullish trendline, which comes around Rs 825 levels and is currently placed near 806 levels. On a daily scale, it has tested 50 DEMA, said Jigar S Patel, Technical Research Analyst, Anand Rathi Shares and Stock Brokers. "If weakness persists, then we may see testing of 100-DEMA at Rs 780. Go forward, support is expected near Rs 780 and resistance is seen near Rs 840," he said. At present, the stock is consolidating the previous rise, while it has outperformed the benchmark indices, said Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets. "One can hold the stock at current levels with a stop loss of Rs 810 for the target of Rs 870-890 levels in the next couple of weeks," he added.

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