Adani Wilmar shares snap 4-day fall, jump 9% today; here's what technical analysts say

Shares of Adani Wilmar Ltd rose sharply in Wednesday's trade, halting their four-day losing run. The stock jumped 9.10 per cent to hit a day high of Rs 363.75 over its previous close of Rs 333.40. At today's high price of Rs 363.75, the scrip was up 11.24 per cent from its 52-week low of Rs 327, hit on February 28, 2023. Although, The counter has cracked 52.25 per cent from its one-year high price of Rs 761.75, a level seen on October 7 last year.

On technical setup, support on the counter could be seen at Rs 345 level.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "As far as levels are concerned, a decline below Rs 327 could aggravate further sell-off. On the higher end, the immediate resistance is placed around Rs 370, followed by Rs 395 in the near period."

AR Ramachandran from Tips2trades said, "Adani Wilmar looks bullish on the daily charts with strong support at Rs 345. A daily close above resistance of Rs 359 could lead to target of Rs 373 in the near term."

Market expert Ravi Singh said, "Technical parameters are currently supporting the uptrend. The stock may hit Rs 380 in the near term."

The counter traded higher than the 5-day, 10-, 20-day simple moving averages (SMAs) but lower than the 30-day, 50-, 100-, 150- and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 49.75. 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 108.74 against a price-to-book (P/B) value of 5.42.

The scrip has an analyst target price of Rs 445, Trendlyne data showed, suggesting a potential upside of 26 per cent. It has a one-year beta of 1.55, indicating high volatility on the counter.

In a separate development, Abu Dhabi conglomerate International Holding Co (IHC) said it has increased its stake in India's Adani Enterprises Ltd to more than 5 per cent, days after it sold its stakes in two other Adani Group companies.

With the new investments, news agency Reuters said the value of IHC's holding in the Adani Group's flagship company now stands at around Rs 14,000 crore (based on Tuesday's closing price).

Last week, IHC had agreed to sell its investments in Adani Green Energy and Adani Energy Solutions (formerly Adani Transmission) as part of a strategy to rebalance its portfolio.

(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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