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Shares of Adani Wilmar Ltd have fallen 53% from their 52-week high in a year. The Adani Group stock, which hit a 52-week high of Rs 750.50 on October 11 last year ended at Rs 348.55 in Wednesday’s session, declining 53.46% on BSE. According to Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One, the level of Rs 327 is crucial.
“As far as levels are concerned, a decline below Rs 327 could aggravate further sell-off. On the higher end, the immediate resistance is placed around Rs 370, followed by Rs 395 in the near period,” said Krishan.
Market cap of the firm stood at Rs 45,300 crore.
Total 2.03 lakh shares changed hands amounting to a turnover of Rs 7.13 crore on BSE. The stock has lost 42.30% this year. Adani Wilmar stock has a one-year beta of 1.6, indicating high volatility during the period.
Commenting on the trading strategy for the stock, Deven Mehata Equity Research Analyst Choice Broking said, “The stock is observed to be in a critical juncture with its price hovering around Rs 345.60 levels. The key highlight is the presence of a strong support range between Rs 328- Rs 333 levels, which has acted as a safety net for the stock’s fall. Should the stock fail to hold above this support zone, a further drop towards the next support at Rs 305 is anticipated. However, there are signs of a potential turnaround. The recent bounce from the support levels indicates that buyers are stepping in, suggesting some optimism in the market. To confirm this bullish sentiment, the stock needs to close above the initial resistance level of Rs 366, which also coincides with the 50-Day Exponential Moving Average (EMA).”
“For traders willing to take on higher risk, initiating a long position above Rs 366 levels with a stop loss set at Rs 333 could be a strategy. The upside target in this scenario is projected at Rs 400. Additionally, the momentum indicator RSI has shown signs of improvement, rebounding from extremely oversold levels at 23 to around 45, indicating positive momentum building in the stock. These technical signals should be considered alongside broader market conditions and company-specific factors when making trading decisions,” added Mehata.
In terms of technicals, the relative strength index (RSI) of Adani Wilmar stands at 47.9, signaling it’s trading neither in the overbought nor in the oversold territory. Adani Wilmar shares are trading higher than the 5 day, 10 day and 20 day but lower than the 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
In its Q2 business update on October 5, Adani Wilmar logged a strong double-digit volume growth on the back of strong rural sales. However, in spite of growing volume, the value of sales declined on a year-on-year (YoY) basis.
Despite a good show in Q2 updates, the Adani Group stock is almost unchanged from the October 5 close of Rs 349.8 on BSE.
Abhijeet from Tips2trades said, “Adani Wilmar has been bearish on the Daily charts with strong resistance at Rs 349. A daily close below support of Rs 332 could lead to a target of Rs 316 in the near term.”
The stock has lost 15.64% since the firm announced its Q1 earnings. It stood at Rs 413.20 on August 1. The firm reported a loss of Rs 79 crore in the June 2023 quarter. Net profit for Q1 of last fiscal stood at Rs 194 crore. Consolidated revenue slipped 12% to Rs 12,928 crore YoY against Rs 14,724 crore, reflective of steep decline in edible oil prices.
EBITDA fell 71% to Rs 130 crore in the June 2023 quarter against Rs 443 crore in the Q1 of last fiscal.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Also read: HDFC AMC, Anand Rathi Wealth, Angel One: Trading strategies for these buzzing stocks
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