This will be based on multiple Analysts reports published on Adani Stocks . Investors will know what to do with Adani Stocks Now.
After mayhem of Adani Stocks in Market, finally Gautam Adani must have had a good sleep last night seeing stocks of his companies end in the green across the board for the first time since the release of Hindenburg Research’s explosive report against the group.
Shares of Adani Ports and Special Economic Zone, ACC, Ambuja Cements, Adani Wilmar, Adani Power, Adani Transmission, Adani Total Gas, Adani Green Energy, New Delhi Television, and Adani Enterprises rose 2-15% on Wednesday.
While most of the Adani Group stocks have seen intermittent recovery over the last 1 month, one stock that saw green light for the first time since January 23 was Adani Total Gas. The correction since January 23 has eroded more than 83% of the stock’s value.
So, is it just a minor pullback for the Adani stocks or can Dalal Street finally see some light at the end of the tunnel?
The answer for this isn’t straightforward.
“After the heavy erosion, there was some pullback witnessed in the Adani Group stocks which we can call just as “Dead-Cat” bounce since the sentiment has been shattered among the market players, and for some conviction to be established, the pullback needs to sustain for some more time and stabilize with clarification maintained,” said Vaishali Parekh, vice president – technical research analyst at Prabhudas Lilladher.
Rahul Ghose, the founder and CEO of Hedged too, believes that the recovery in the stocks will not be of any material importance unless they break the near term resistance levels.
“Adani Enterprises, along with Adani Green and Adani Power, have to settle down and form a base which they are yet to do. They are still constantly perturbed by news flow and high action even on the derivative front,” Ghose said.
While Ghose and Parekh are awaiting some sort of stability to confirm a trend reversal, Nagaraj Shetti of HDFC Securities believes that the worst of the correction for the group stocks is over.
“I don’t expect the lows made on Feb 3 (by Adani Ent and Adani Ports) to be broken again. From hereon, an upmove in the group stocks will be possible and we overall see a 15-20% upside, but this will happen in a very staggered manner,” Shetti, a technical analyst at the brokerage house, said.
Among all, the only stock that looks decent on charts from a high-risk-high-return perspective for Ghose is Adani Ports.
“This stock is the only one that has made a reasonable base and it is interesting to note that it is forming multiple divergences on the higher time frame charts as well,” he said. He recommends buying the stock once it crosses Rs 655 on a closing basis. The stop loss for this position will be slightly bigger owing to the volatility, and the target would be Rs 700 and then Rs 770.
Parekh of Prabhudas Lilladher also finds Adani Enterprises and Adani Ports attractive after the recent correction, but added that the pullback is subjected to profit booking as sentiment is not strong enough.
“Some of the stocks which can be bought for a short-term basis would be Ambuja Cements, ACC, Adani Enterprises and Adani Ports…but I would suggest profit booking if one gets 8-10% gains,” she said.
As far as Adani Wilmar, Adani Green, Adani Power and Adani Total Gas are concerned, Parekh said that they look very bearish and the candlestick pattern is also erratic, with a series of lower circuits. So, these stocks can be avoided as of now.
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