Adani Total Gas shares slump 8% in fag-end trade; what analysts are saying

Shares of Adani Total Gas Ltd fell in Tuesday's trade, pausing their sharp two-session rally. The stock dropped 8.34 per cent to an intraday low of Rs 715.75 and was last seen trading 7.71 per cent lower at Rs 720.65, marking a 3.85 per cent decline on a year-to-date (YTD) basis.

Stock exchanges recently sought clarification from the Adani Group company regarding the share price movement. In response, Adani Total stated, "We would like to inform that the movement in the share volume/price of the company is purely due to market conditions and absolutely market driven. The management of the Company neither has any control nor has any knowledge of the reasons for the movement in volume/price of shares."

Separately, the Securities and Exchange Board of India (Sebi) has dismissed allegations of stock manipulation made by US-based short-seller Hindenburg Research against Gautam Adani and group companies.

Earlier, Hindenburg had claimed that Adicorp Enterprises was used to route funds from Adani group companies to listed Adani Power. It alleged that in 2020, four Adani companies extended Rs 620 crore to Adicorp, which then lent Rs 610 crore to Adani Power without disclosure in the financial statements of multiple lenders.

After reviewing the matter, the regulator stated it would "dispose of the instant proceedings against Noticees without any direction."

Technically, Adani Total has shown a bullish breakout above Rs 700, with strong support around Rs 670–660 and potential upside towards Rs 820–840. However, there are concerns of bearish signals, with resistance near Rs 798 and risks of a dip towards Rs 624 if it closes below Rs 721. In the short term, the stock is expected to trade within the Rs 700–835 range, with a breakout above Rs 800 likely to extend the rally towards Rs 835.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "Adani Total witnessed a sharp rise in both price and volume. The move was supported by positive crossovers among short-term EMAs, strengthening the bullish sentiment. The stock has broken out of the Rs 700 zone and any near-term dip is likely to be viewed as an opportunity to add longs. On the downside, the Rs 670–660 range offers strong support, while the Rs 820–840 zone appears to be the potential upside resistance in the near future."

Sebi-registered analyst AR Ramachandran noted, "Adani Total Gas stock price is bearish but overbought on daily charts with strong resistance at Rs 798. Investors should consider booking profits as a daily close below support of Rs 721 could trigger a dip towards Rs 624 in the near term."

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, observed, "Support lies at Rs 700, with resistance at Rs 800. A breakout above Rs 800 could extend the rally towards Rs 835. The stock is expected to trade within the Rs 700–835 range in the short term."