Adani Ports shares: Check target prices for Sensex's latest inclusion

Shares of Adani Ports & Special Economic Zone Ltd (APSEZ) have remained at the radar of investors since the announcement of including the BSE Sensex, where it will replace the IT major Wipro from the 30-share pack. The change will become effective from June 24.

The inclusion of Adani Ports in the Sensex pack will infuse inflows of nearly $252 million or Rs 2,100 crore in Adani Ports, as per a note by Nuvama Alternative & Quantitative Research. Anticipating inclusion of Adani Ports in Sensex, technical experts see more upside in India's largest port operator in the coming days. They see up to 13 per cent upside in the stock in coming days.

Adani Ports has demonstrated a breakout above the consolidation zone of Rs 1,224-1,400 on the weekly chart, with a strong bullish candle indicating the continuation of the uptrend. During the pattern formation, volume activity tends to decline, while at the breakout, there is an increase in activity, indicating heightened market participation, said Axis Securities.

"The stock has established a support base at Rs 1,188, holding above the 38 per cent Fibonacci Retracement level of the rally from Rs 395-1425, indicating potential medium-term support. The weekly strength indicator RSI given a crossover above its reference line generated a buy signal. The above analysis indicates an upside of Rs 1542-1585 levels," it added, keeping stop loss at Rs 1,308.

Shares of Adani Ports scaled new 52-week highs of Rs 1,457.25 on Monday, but the stock dropped more than 2 per cent to Rs 1,402.65 on Tuesday. The total market capitalization of the company stood little more than Rs 3 lakh crore for the day.

Adani Ports has recently witnessed a decent pullback from the support taken near Rs 1,240 zone and thereafter gaining strength has moved past the previous peak zone of Rs 1,425 levels to indicate a breakout and can expect further rise in the coming days, said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

"The near-term support would be at around Rs 1,380 levels above which the bias would be maintained positive. On the upside, with bias maintained positive, the next targets visible are Rs 1,490 and Rs 1,560 levels respectively," he said.

Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets observed a rounding base pattern formation on the daily chart of Adani Ports, which is a sign of strength. Further, the momentum indicator MACD is positively poised.

"Even the stock is outperforming the benchmark indices. Combining the above parameter, it is evident that momentum on the upside may continue. Hence, one can 'buy' the stock at current levels with a stop loss of Rs 1,370 for a target of Rs 1,508-1,550 levels in the next couple of weeks," he added.

The move surprised many market participants, who were expecting Adani group's flagship firm Adani Enterprises to get entry in the Sensex, given its higher market capitalization. However, This is the first time a Gautam Adani-owned company will be added to the widely-tracked Sensex index.

Despite the higher market capitalization, Adani Ports have less promoter shareholding of 65.9 per cent, compared to 72.6 per cent to that of the Adani Enterprises. Adani Ports is expected to be assigned a weightage of 1.2 per cent in the Sensex.