Shares of Adani Enterprises Ltd on Wednesday slipped into the red and tested Rs 2,400 levels. The stock today moved 0.81 per cent down to hit an intraday low of Rs 2,394. It eventually settled 0.27 per cent lower at Rs 2,406.95 over its previous close of Rs 2,413.55. Although, the stock has turned multibagger if we compare it from its 52-week low price of Rs 1,017.10, a level seen on February 3 this year, rebounding 136.65 per cent. Yet, it has declined 42.55 per cent from its one-year high of Rs 4,189.55, hit on December 21, 2022.
The stock has witnessed major ups and downs after the Hindenburg setback. In January this year, US-based short seller Hindenburg Research released a report alleging stock manipulation and accounting fraud by the Gautam Adani-led conglomerate. Adani, however, denied all the claims. The stocks then staged a recovery in March when US boutique investment firm GQG Partners announced a cumulative investment of Rs 15,446 crore in four Adani firms.
On technical setup, analysts largely remained mixed on the counter. Support could be seen at Rs 2,386, an analyst said. Another suggested that it is under consolidation between Rs 2,300 and Rs 2,600 levels; while one more said the outlook remains positive till the scrip holds Rs 2,200.
Vaibhav Kaushik, Research Analyst at GCL Broking, said, “Adani Enterprises is under consolidation between Rs 2,300 and Rs 2,600. Either side breakout can give a movement of 20 per cent. So, right now keep it on the radar until there is no break out.”
AR Ramachandran from Tips2trades said, “Adani Enterprises has strong resistance at Rs 2,538 on the daily charts. A close below the support of Rs 2,386 could lead to lower target of Rs 1,983 in the near term.”
Gaurav Bissa, VP, InCred Equities said, “Adani Enterprises has witnessed a strong recovery from Rs 1,000 levels. Amid the intense volatility, the stock managed to cross the previous swing high after a brief period of consolidation. The stock is now approaching its 55-EMA on the daily charts, which is placed around Rs 2,200 levels. Although, the outlook remains positive on the stock till it holds above Rs 2,200 levels with a possibility of an upside towards Rs 2,800.”
The counter’s 14-day relative strength index (RSI) came at 55.44. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-earnings (P/E) ratio of 169.56. It has a price-to-book (P/B) value of 19.75.
The scrip has a one-year beta of 2.05, indicating high volatility on the counter.
Around 1.15 lakh shares changed hands today on BSE, which was lower than the two-week average volume of 2.06 lakh shares. Turnover on the counter stood at Rs 27.64 crore, commanding a market capitalisation (m-cap) of Rs 2,74,392.57 crore.
Meanwhile, Indian equity benchmarks closed at their fresh closing highs today, led by gains in financials, banks and technology stocks. The 30-share BSE Sensex pack rose 195 points or 0.31 per cent to close at 63,523; while the broader NSE Nifty index moved 40 points or 0.21 per cent to settle at 18,857.
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