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Shares of Adani Enterprises saw some strong profit booking on Wednesday after the stock rose over 45 per cent since Friday, May 19. The stock has been in the buzz after the Supreme Courts’ comments and the renewed buying interest by GQG Partner’s Rajiv Jain. Shares of Adani Enterprises rose over 45 per cent to Rs 2751.25 on Wednesday from Rs 1,890-level on Friday, May 19. However, the stock dropped about 8 per cent on the profit booking to Rs 2425.85 during the session. The total market capitalization of Gautam Adani’s flagship tumbled to Rs 2.80 lakh crore from Rs 3.15 lakh crore a day earlier. Adani Enterprises and other Adani stocks have been in buzz after the Supreme Court appointed AM Sapre committee suggested it was not possible to conclude that there was a regulatory failure on Hindenburg’s price manipulation allegation. The company is looking to raise funds and sell its non-core assets according to media reports. GQG Partners’ Rajiv Jain raised its stake in billionaire Gautam Adani’s conglomerate by about 10 per cent as his holdings in the conglomerate now stand at $3.5 billion. He also intends to take part in the conglomerate’s future fund raising. Jain, in an interview with Bloomberg, called Adani Group stock as ‘the best infrastructure assets available in India’.
Also Watch: Gautam Adani reclaims spot in Bloomberg Billionaires Index top 20 after sharp rally in Adani Group stocks as Hindenburg effect fades Kranthi Bathini, Equity strategist at WealthMills Securities said the profit booking after a stellar rally was on the cards and is not surprising. However, the fundamentals of the company remain unchanged on the back of recent developments and there is no reason to panic. “Investors’ confidence and perception is turning positive as prices are in uptrend. Having said that, Adani Enterprises has been a high beta counter and investors with strong risk appetite can consider buying it for the longer run,” he said. We are going to see a huge number of institutional investors coming in buying these stocks because the clouds of uncertainty around stocks have been cleared. At the same time, valuations are also good. They have access to growth capital. The group has emerged stronger, said Vinit Bolinjkar, Head of Research at Ventura Securities. “Adani Enterprises has prioritized asset allocation. With their impending IPO, the green energy business will get wings. That is not discounted in valuations. I will not be surprised if analysts give a target of Rs 4,000 to Adani Enterprises,” he added. The Adani Group’s flagship company attracts technical analysts as well who see stock to hit Rs 3,000-3,800 levels after the current phase of consolidation is over. They believe positive on the stock for a long after and suggest investors to book profit and re-enter the stock at dips. Adani Enterprises, on its quarterly charts, witnessed back-to-back 11 quarters of higher tops and higher bottoms formation with a sharp rise from levels of Rs 127-4,190, post March 2020 fall. The stock corrected 75 per cent of its previous rise in a single quarter and a fast recovery in the current quarter, said Sujit Deodhar, Head Technical Analyst at Wellworth Share & Stock Broking. “At current juncture the stock is trading in the middle of its range, as the support for the stock is placed at Rs 1,750 levels, while the resistance is placed at Rs 3,440 followed by Rs 3,880 levels. So, for traders, the current up move can be utilized as a profit booking opportunity, since the stock has already bounced back 50 per cent of its fall from the top. This stock post a zig zag move, should spend some time & consolidate for next few quarters, to get itself attractive for investors to buy,” he said.
“In the near term, we can see the targets between Rs 3,000 and Rs 3,800 while keeping a strict stop loss placed at Rs 1,480,” said VLA Ambala, Research Analyst at Stock Market Today.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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