Adani Green Solutions shares shoot up 18%; time to book profit or more upside possible?

Shares of Adani Green Solutions Ltd rose sharply in Wednesday's trade as market participants awaited the Supreme Court's ruling on market regulator Sebi's probe into the billionaire Gautam Adani-led conglomerate over a report alleging 'fraud' by US-based short seller Hindenburg Research.

The stock today surged 17.83 per cent to hit a day high of Rs 1,250 against its previous close of Rs 1,060.85 in early deals. It later gave up a major chunk of its gains amid a highly volatile session. After the SC verdict was out, which largely came in favour of the Adani Group, the scrip rebounded and was last seen trading with 5.92 per cent gains at Rs 1,123.60. At this price, it has gained 45.37 per cent in six months. That said, the counter has declined 56.38 per cent in the past one year.

The top court has rejected demand for transferring the probe into allegations of violations of securities against the Adani Group to a special investigation team (SIT). It also asked Sebi to complete the remaining two of the 24 probes in three months.

The Securities and Exchange Board of India (Sebi) is probing the group after Hindenburg, in January last year, alleged improper use of tax havens, stock manipulation by the group. The Adani Group has denied any wrongdoing. A SC-appointed panel had, in May, found no lapses at the Adani Group.

For Adani Green Solutions shares, technical analysts suggested that support could be seen at Rs 1,195, followed by Rs 1,150 and Rs 1,120 levels. On the higher side, a decisive closing above Rs 1,250 is required for a further upside.

"Support will be at Rs 1,150 and resistance at Rs 1,250. A decisive breakout above Rs 1,250 level may trigger a further upside. Expected trading range will be between Rs 1,000 and Rs 1,400 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Adani Energy Solutions is bullish but also overbought on daily charts with next resistance at Rs 1,320. Investors should book profits at current levels as a daily close below support of Rs 1,195 could lead to target of Rs 997 in the near term," said AR Ramachandran from Tips2trades.

"Immediate resistance will at Rs 1,230. Support on the counter will be at Rs 1,120," said DRS Finvest founder Ravi Singh.

Bourses BSE and NSE have put the securities of Adani Green under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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