Adani Enterprises falls most in a month. Are bears wresting control from bulls?

The sharp fall was backed by high volumes, as more than 11 million shares changed hands on the National Stock Exchange, way higher than the six-month daily average trading volume of 7 million units.

The Adani Group stock ended 4.3% down at Rs 2,401.40 on the NSE, after touching an intraday low of Rs 2,350. The fall in trade on Monday saw the stock snap a two-day winning streak.

The sharp cut in trade on Monday made investors poorer by $1.4 billion. Not only Adani Enterprises, but stocks across Adani Group companies ended in the negative territory.

Shares of New Delhi Television lost nearly 3% to Rs 232.40, and Adani Total Gas fell 2% to Rs 657.55. Adani Ports and Special Economic Zone, Ambuja Cements, ACC, Adani Green Energy, and Adani Power ended over 1% down each.

Adani Group shares have had a roller coaster ride in the last 3-4 months, after the allegations made by US-based short seller Hindenburg Research in late January, and the series of events thereafter.

Stocks got some breather after the Supreme Court panel last month in its report that stated there were no regulatory lapses found with respect to the movement in the share prices of Adani stocks. Further, GQG Partners announced additional investment and stake increase in Adani Group, which bolstered sentiment and saw stocks giving strong breakouts.

However, most Adani stocks have been in a range bound trend this month. Adani Enterprises stock witnessed a small consolidation breakout above Rs 2,200 levels with strong volumes, which was followed by a swift upside. Since then, the stock has been in a mild consolidation phase and witnessed some profit booking, said Gaurav Bissa, VP, InCred Equities.

“The stock is approaching its 55-EMA on the daily charts placed around Rs 2,200 levels. 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,” Bissa said.

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