Adani Ports shares crawl higher despite weakness in group’s most stocks; here’s what tech charts hint
Shares of Adani Ports and Special Economic Zone Ltd (Adani Ports) traded higher on Friday, extending their upward move for the second straight session even as most of the group’s other stocks continued to bleed. The stock settled 1.24 per cent higher at Rs 558.95 over its previous close of Rs 552.10. Turnover on the counter stood at Rs 42.03 crore, commanding a market capitalisation (m-cap) of Rs 1,20,740.97 crore.
Most Adani stocks again came under intense selling pressure after Wikipedia claimed that ‘sockpuppets’ – some of them being the online encyclopedia’s employees – created ‘puffery’ around Gautam Adani, his family and the group by adding non-neutral material and removing warnings from the information.
Since January 24 this year, Adani stocks started dwindling after US-based short seller Hindenburg Research alleged that the Gautam Adani-led Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.
On the earnings front, the country’s largest integrated logistics player’s net profit slipped 12.94 per cent to Rs 1,336.51 crore during the third quarter ended December 2022 (Q3 FY23) against Rs 1,535.28 crore in the same period a year ago.
Kotak Institutional Equities has assigned a ‘Buy’ call on Adani Ports while pegging the stock at a fair value of Rs 810.
Deven Mehta, Derivative Analyst at Choice Broking, said, “On weekly charts, the stock has tested the next strong support of Rs 390-395 levels in the first week of February. These support levels were crucial as the stocks faced resistance at these levels in the month of December 2020. Currently, the stock is trading below 20, 50 & 200 Day EMAs (Exponential Moving Averages). On Daily charts, the scrip has also formed a hammer kind of pattern which is also a sign of reversal. Stock has recently faced resistance near Rs 600 level which is also the 20-day EMA. If it crosses the Rs 600 level on a closing basis, then the stock can further move towards the Rs 675-680 levels.”
Ravi Singh, Vice-President and Head of Research at Share India, said, “The counter may witness selling pressure around the Rs 500 levels in the coming trading sessions.”
Ravi Singhal, CEO at GCL, said, “The stock looks very weak on technical charts. Place stop loss at Rs 655 for a lower target of Rs 250.”
The stock traded lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 38. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a negative price-to-equity (P/E) ratio of 94.79.
Yet, Adani Total has an average target price of Rs 1,145, Trendlyne data showed, suggesting a potential upside of 104.87 per cent. The scrip has a one-year beta of 1.61, indicating high volatility.
Meanwhile, Indian equity benchmarks traded lower today, extending their losing run for the sixth straight session. The domestic indices were dragged by metals, banks, consumer goods and automobile stocks. Fears of aggressive interest rate hikes by global central banks kept investors worried.
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