Adani shares surge on strong recovery and positive market sentiment

Adani group stocks, which were on a continuous downward trend since January 25, have shown signs of recovery in the last two days, following the company’s efforts to calm investors. Adani Transmission, Adani Total Gas, and Adani Green Energy were three Adani Group firms whose shares continued to rise on Monday and reached their respective high price bands. Adani Transmission saw a jump of 5 percent, reaching a day high of Rs 1,003.95, up from its previous close of Rs 956.15. However, the stock has lost 60.63 percent on a year-to-date (YTD) basis.

The current trading price of the stock is above the 5-day and 20-day moving averages but below the 50-day, 100-day, and 200-day moving averages. The 14-day relative strength index (RSI) for the counter stands at 48.23, indicating a neutral position. Generally, an RSI below 30 is considered oversold and an RSI above 70 is overbought. The stock of the firm has a high price-to-equity (P/E) ratio of 778.30 as well.

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With an average target price of Rs 4,172, Adani Transmission might increase by 316.85%. With a one-year beta of 1.32, the stock has a high level of volatility. The stock is now up against significant resistance around Rs 1,009, according to Tips2trades’ AR Ramachandran, and a daily close over this barrier might result in positive goals of Rs 1,068-1,155 in the near future. The current stock price is higher than both the 5-day and 20-day moving averages, but lower than the 50-day, 100-day, and 200-day moving averages. The 14-day Relative Strength Index (RSI) is at 48.23. The stock’s price-to-equity (P/E) ratio stands at 778.30.

Adani Total Gas experienced a similar uptick, with the stock rising by 5% to reach a day high of Rs 907.55. However, it has declined by 65.94% so far this year.

Currently, the stock is trading above the 5-day and 20-day moving averages but below the 50-day, 100-day, and 200-day moving averages. The counter’s 14-day RSI stands at 41.69. P/E ratio for Adani Total Gas is 189.61.

AR Ramachandran further said that Adani Total Gas is facing strong resistance at Rs 930, and a daily close above this resistance level could be bullish and lead to targets of Rs 1,029-1,135 in the near term. The stock has a support level of Rs 869

Adani Green Energy surged by 5 percent today and hit its upper price limit of Rs 897.80. However, the stock has witnessed a decline of 52.47 percent in the year 2023.

Adani Green Energy has an average target price of Rs 3,072 indicating a potential upside of 242.90 percent. The stock’s one-year beta is 2.46, indicating high volatility. The stock is currently trading above the 5-day and 20-day moving averages but below the 50-day, 100-day, and 200-day moving averages. The counter’s 14-day RSI is at 43.27.

Following allegations of stock manipulation and accounting fraud by US-based short seller Hindenburg Research in January 2023, Adani Group’s listed entities witnessed a significant drop in market value. The conglomerate, led by Gautam Adani, refuted all the claims. However, the stocks bounced back after US boutique investment firm GQG Partners revealed its investment of a cumulative Rs 15,446 crore in four Adani firms – Adani Enterprises, Adani Green Energy, Adani Ports, and Adani Transmission.

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