Buy Adani Energy Solutions shares, target price range Rs 1,400-1,600: Vaishali Parekh, PL

Shares of Adani Energy Solutions Ltd have potential to test 1,400-1,600 levels in coming days, says Vaishali Parekh, Vice President for Technical Research at PL Capital.  On Friday, the Adani group stock was trading 0.56 per cent higher at Rs 1,107.90 on BSE. The scrip has fallen 6.54 per cent in the past five sessions but is up 10.38 per cent for the one-month period.  

Parekh said the Adani Energy Solutions stock was in a consolidation phase for quite a long time. It recently saw a pattern breakout, as the scrip hit its 52-week high level of Rs 1,348. The stock, however, failed to sustain those levels and saw selling pressure. 

Adani Energy Solutions has retraced almost 50 per cent from its 52-week high and is now near the strong support of a cluster of moving averages. The RSI has cooled off from the highly overbought zone and is currently well-placed showing improvement, Parekh said. 

"With the bias slightly getting better, we anticipate a positive move further ahead. With the chart looking attractive, with support of 200 DMA levels of Rs 1,000, one can buy the stock for an upside target of 1400–1600 levels," Parekh said.

Formally known Adani Transmission Ltd, Adani Energy Solutions recently reported a loss of Rs 823.92 crore for the June quarter compared with a profit of Rs 361.44 crore in the March quarter, and a profit of Rs 175.06 crore in the corresponding quarter last year. The company reported an exceptional loss of Rs 1,506.02 crore.

Revenue from operations, Adani Energy Solutions said, climbed 46.79 per cent YoY to Rs 5,378.55 crore compared with Rs 3,663.91 crore in the same quarter last year.