Adani Ports shares snap 7-day losing run, climb 4% today

Shares of Adani Ports and Special Economic Zone rebounded over 4 per cent in Tuesday's trade, halting their losing run of seven straight sessions. The stock rose 4.17 per cent to hit a day high of Rs 621.75 over its previous close of Rs 596.85. A couple of sessions back, Adani Ports slipped to its one-year low level of Rs 536.85. The scrip has lost 25.79 per cent in the past one month.

Around 8.33 lakh shares changed hands on BSE today, which was higher than the company's two-week average volume of 7.76 lakh shares. Turnover on the counter stood at Rs 50.38 crore, commanding a market capitalisation (m-cap) of Rs 1,32,351.71 crore.

Technical charts hinted that the counter largely looked oversold, analysts said.

"Currently, the stock is trading below 200-DMA which is placed at Rs 790, at the same time stock has broken its major long-term support line which was placed at the Rs 650-670 zone. The counter is in the oversold zone but there is no pullback buying seen in this stock in the last trading session. So, investors should wait for some time and watch this stock until it crosses the major resistance zone of Rs 700," said Ganesh Dongre - Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Adani Ports looks bearish but also very oversold on the daily charts. Investors should buy only if a close is above Rs 657 level for targets of Rs 702-783. Rs 570 will be strong support," said AR Ramachandran from Tips2trades.

The stock was last seen trading lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 16.79. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 160.80.

Adani Ports has an average target price of Rs 1,211.67, Trendlyne data showed, suggesting a potential upside of 98.31 per cent. The scrip has a one-year beta of 1.49, indicating high volatility.

Adani Group stocks came under intense pressure after a report by US-based short seller Hindenburg Research alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.

It said that the timing of Hindenburg's report clearly showed the short seller's intention to damage "the follow-on public offering from Adani Enterprises, which is the biggest FPO ever in India."

Adani Enterprises' Rs 20,000-crore follow-on public offer (FPO) received bids for 93,07,572 shares on the third day of bidding (Day 3) so far. The issue was subscribed 20 per cent of the total size of 4,55,06,791 shares, as of 11:57 am today.

Meanwhile, Indian equity benchmarks traded slightly lower in afternoon deals as losses in technology and energy stocks countered gains in metals and state-owned lenders.

Also read: Adani Enterprises FPO subscribed 6% so far; NII quota sees 17% bids

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