Adani Total Gas shares extend fall, just 5% away from 52-week low; should you buy, sell or hold?

Shares of Adani Total Gas on Wednesday extended their fall for the fourth consecutive session. The stock dropped 5 per cent to hit its lower circuit of Rs 663.50 over a previous close of Rs 698.40. At today's low price, the stock traded just 4.76 per cent higher from its 52-week low of Rs 655, hit on May 19, 2023. Yet, the counter has slumped 83.41 from its one-year high level of Rs 3,998.35, a level seen on January 23 this year.

Around 5.85 lakh shares changed hands today on BSE, which was more than two times higher compared to the two-week average volume of 2.43 lakh shares. Turnover on the counter stood at Rs 39.32 crore, commanding a market capitalisation (m-cap) of Rs 73,148.37 crore.

The stock was last seen trading lower than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 32.65. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-earnings (P/E) ratio of 144.98. It has a price-to-book (P/B) value of 26.15.

Support on the counter could be seen at Rs 620, followed by Rs 600 levels.

"Adani Total looks bearish but also oversold on the daily charts with next support now at Rs 620. Investors should buy only if a daily close is above the resistance of Rs 710 for higher targets of Rs 854-1,040 in the near term," said AR Ramachandran from Tips2trades said.

"The stock may fall more. So, it is better to take an exit if prices do not sustain at Rs 600 levels. If the price shows sustainability at the Rs 600 range, then expected targets are between Rs 800 and Rs 1,000," said VLA Ambala, Research Analyst at Stock Market Today.

The scrip has a one-year beta of 1.55, indicating high volatility.

Adani Total Gas is a joint venture between France's energy major TotalEnergies and Adani Group.

Adani Group shares saw a massive market value erosion since January 24, when US-based short seller Hindenburg Research released a report alleging stock manipulation and accounting fraud by the Gautam Adani-led conglomerate. Adani Group, however, denied all the allegations.

The stocks later staged a recovery after US boutique investment firm GQG Partners announced a cumulative investment in four Adani firms.

Meanwhile, Indian equity benchmarks fell sharply today, dragged by banks, financials, metals and energy stocks.

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