Shares of Adani Enterprises rose sharply in Wednesday’s trade, pausing their downward trend of four consecutive sessions amid volatile bouts. The stock climbed 8.83 per cent to hit a day high of Rs 1,891.10 over its previous close of Rs 1,737.75. In addition, shares of three other Adani Group companies — Adani Total Gas, Adani Transmission and Adani Power — recovered sharply after hitting their respective lower price bands.
Adani Total Gas rebounded 9.83 per cent from its day low of Rs 900.45 to touch today’s high level of Rs 989. And, Adani Transmission jumped 10.52 per cent to hit a day high of Rs 946.60 from today’s lower price band of Rs 856.50. Also, Adani Power moved 10.49 per cent up to hit its upper price band of Rs 214.95 from a day low of Rs 214.95.
A couple of days back, the group said it has prepaid margin-linked share-backed financing worth $2.15 billion as part of its debt prepayment plan, before its deadline of March 31.
This comes at a time when Adani seeks to rebuild investor confidence in the aftermath of a scathing report by US-based short seller Hindenburg Research. Hindenburg’s report alleged stock manipulation and improper use of tax havens, and flagged debt concerns. Adani Group, however, denied the claims.
On the technical front, AR Ramachandran from Tips2trades said, “Adani Enterprises has strong resistance at Rs 1,875 on the daily charts. A daily close above this level could lead to targets of Rs 2,068-2,170 in the near term. Support will be at Rs 1,650.”
The stock was last seen trading higher than the 20-day moving averages but lower than the 5-day, 50-day, 100-day and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 47.21. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 140.64.
The scrip has a one-year beta of 1.77, indicating high volatility on the counter.
A total of 5.26 lakh shares changed hands today on BSE, which was much lower than the two-week average volume of 55.58 lakh shares. Turnover on the counter stood at Rs 95.16 crore, commanding a market capitalisation (m-cap) of Rs 2,11,555.71 crore.
Meanwhile, Indian equity benchmarks plunged into the red in late deals, dragged by banks, consumer goods, financials and automobile stocks.
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