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Adani Enterprises vs Shree Cement: Risk-reward favourable for cement maker 

Adani Enterprises vs Shree Cement: Risk-reward favourable for cement maker 

Shrikant Chouhan of Kotak Securities said a pullback rally is due, which may lift Shree Cement stock to Rs 24,500 level.

Prashanth Tapse of Mehta Equities said Shree Cement is consolidating in a broader range of Rs 18,000- 26,000. Prashanth Tapse of Mehta Equities said Shree Cement is consolidating in a broader range of Rs 18,000- 26,000.

NEW DELHI: Shree Cement has exited Nifty50, making way for Adani Enterprises, the second Adani Group stock, to be a part of the elite 50-pack. 

At 9.50 am, shares of Adani Enterprises traded 1.3 per cent lower at Rs 3,425 on NSE while those of Shree Cement were trading nearly 2.17 per cent higher at Rs 21,750 on the same exchange. 

On the technical charts, risk-reward looks favourable for Shree Cement, said Shrikant Chouhan of Kotak Securities.  

"On a weekly and monthly basis, Shree Cement moved back to Rs 20,500/20,600 levels after hitting a high of Rs 25,550. It found good support between Rs 20,500 and Rs 20,600 levels. A pull-back rally is due, which will push the stock higher up to level Rs 24,500. On the downside, we should place the last stop loss at Rs 20,500," Chouhan said.

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Adani Enterprises has the next big support at Rs 3,400, Chouhan said.  

"If Rs 3,400 is out, it can drop to Rs 3,100. On a monthly basis, the stock has got overstretched in the short term and we would see further weakness at Rs 3,100. On the upside, Rs 3,850/3,900 would be a big hurdle. Based on the risk-to-reward ratio, we would prefer Shree Cement over Adani Enterprises," he said. 

Om Mehra, Technical Associate at Choice Broking said Shree Cement is trading below its below 200-day moving average (MA), but has taken support from 89-DMA. Besides, Mehra said the stock has formed a good base around Rs 20,580 level. 

"We continue to believe that the recent stock price correction is an opportunity to accumulate. By the end of the year, the stock could reach Rs 25,000-26,000 levels," Mehra said. 

Mehra said shares of Adani Enterprises have been rising steadily. 

"After a significant surge, the stock appears to have seen moderate profit booking. However, for those that invest for the long-term, a correction is just a minor hiccup. The stock has consistently delivered positive returns of up to 65 per cent over the last five festive seasons, from Navratri to Diwali. Investors can add this stock it it tests the Rs 3,000 zone, which is also a 23.6 percent of Fibonacci level," Mehra said on Adani Enterprises. 

Prashanth Tapse of Mehta Equities said Shree Cement is consolidating in a broader range of Rs 18,000- 26,000.

"A possible support will be near Rs 18,120 and crucial resistance lies near Rs 26,070. For the short term, immediate support for the stock is near Rs 20,230," he said. 

On the monthly and weekly charts, Tapse said, Adani Enteprises has moved in single direction, making higher high-lows, indicating upside trend.  "Any corrective moves near Rs 3,360-3,290 can be used as accumulation from a medium-to-long term perspective," he said.

Tapse said an important support for Adani Enterprises lies near Rs 3,300 and resistance at Rs 3,880.  

Published on: Sep 30, 2022, 10:42 AM IST
Posted by: Amit Mudgill, Sep 30, 2022, 10:13 AM IST