Adani Ports shares hit all-time high, up over 80% in six months; what's next?

Shares of Adani Ports and Special Economic Zone Ltd zoomed 11.84 per cent in Monday's trade to hit a record high of Rs 1,607.95. The stock was last seen up 10.21 per cent at Rs 1,584.55. At this price, it has gained 80.32 per cent in the last six months and 51.19 per cent on a year-to-date (YTD) basis.

All 10 listed Adani Group stocks saw a decent uptick today amid a broad-based rally in the infrastructure-focussed Indian conglomerate after exit polls predicted a third straight term for Prime Minister Narendra Modi's government.

The ports-to-power conglomerate, led by billionaire Gautam Adani, has invested billions of dollars in mining, ports, trading, electricity and gas among other sectors to benefit from the Modi government's emphasis on infrastructure development.

The company's arm has recently signed a 30-year concession pact with the Tanzania Ports Authority for container terminals.

Separately, Adani Ports is scheduled to be included in Sensex from June 24 as a part of the semi-annual reconstitution exercise of BSE indices. This inclusion will be a first for any Gautam Adani-led company to enter the 30-share BSE pack.

On technical setup, support on the counter could be seen around Rs 1,550. And, a decisive closing above Rs 1,621 level is required for further upside.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Adani Ports has been in a secular uptrend in the last six months and has been hovering in the cycle of higher highs – higher lows. At present, the counter has registered a record high and seems poised to continue its upmove. The bullish gap of Rs 1,535-1,451 is likely to cushion any short-term blips, while strong support around Rs 1,350 from a medium-term view. Any blip towards the mentioned zones is likely to augur well for buyers. One needs to have a pragmatic approach after the recent rally." 

Jigar S Patel, Senior Manager - Technical Research at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,556 and resistance at Rs 1,621. A decisive close above Rs 1,621 level may trigger a further upside till Rs 1,690 level. The expected trading range will be between Rs 1,550 and Rs 1,690 for a month.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Traders can consider booking some profit. On the upside, the stock has potential to hit Rs 1,800 in some time. Keep a strict stop loss placed at Rs 1,550."

As of March 2024, promoters held a 65.89 per cent stake in Adani Ports.