Adani Total Gas shares surge 20% today; what's next on technical charts?

Shares of Adani Total Gas Ltd saw a massive rise in Tuesday's trading session, extending their gains for the second straight session. The stock moved 20 per cent higher to trade at Rs 644.15 against its previous close of Rs 536.80. Despite the said rise, the scrip has slipped 81.85 per cent on a year-to-date (YTD) basis.

Today's sharp jump in the share price came after the Supreme Court reserved its order in the Adani-Hinderburg case after hearing multiple pleas in the matter. A bench led by the Chief Justice of India DY Chandrachud said that the top court can't doubt Sebi's probe into the case by just relying on media reports.

For the unversed, all Adani stocks -- including Adani Total -- saw a massive market value erosion earlier this year, 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.

Support on the counter could be seen around Rs 600 level. One can place a buy call near support level for higher targets, one of the technical analysts said.

"Traders can buy in the zone of Rs 600–625 for a target of Rs 700. Stop loss would be at Rs 580," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Adani Total Gas looks bullish on daily charts with next resistance now at Rs 669. Investors should wait for a dip near support level of Rs 606 to buy for higher targets," said AR Ramachandran from Tips2trades.

Expected target for Adani Total is Rs 680, keeping a stop loss placed at Rs 600, said DRS Finvest founder Ravi Singh.

The counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-day simple moving averages (SMAs) but lower than the 150-day and 200-day SMAs.

The stock's 14-day relative strength index (RSI) came at 72.76. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 103.92 against a price-to-book (P/B) value of 18.30.

In a separate development, Adani Total said it has initiated a green hydrogen production and blending pilot project. "We will utilise cutting-edge technologies to blend green hydrogen (GH2) with natural gas for over 4,000 residential and commercial customers in Ahmedabad as part of this project," it stated.

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

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

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