Shares of Adani Total Gas Ltd closed higher today after falling for last 20 sessions in line with positive broader indices. Adani Total Gas stock ended at 4.85% higher at Rs 713.20 against the previous close of Rs 680.20 on BSE. Adani Total Gas stock was the top gainer on the BSE oil and gas index. In the same session, Adani Total Gas hit a fresh 52-week low of Rs 655. The stock opened 3.7% lower at Rs 655 today. Adani Total Gas stock is trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. However, it has lost 55.01 percent in a year and fell 80.67 per cent in 2023. Market cap of the firm rose to Rs 78,548 crore on BSE.
A total of 8.22 lakh shares of the firm changed hands, amounting to a turnover of Rs 57.53 crore on BSE.
In terms of technicals, the relative strength index (RSI) of Adani Total Gas stands at 8.1, signaling it’s strongly oversold. Adani Total Gas stock has a one-year beta of 1.5, indicating very high volatility during the period. Shares of Adani Total Gas stock are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Despite today’s rally, the stock is down 81% from its January 24 close of Rs 3,885.
The Hindenburg Research report that jolted the Adani Group’s fortunes and future plans came on January 24 this year, just before Adani Enterprises’ Rs 20,000 crore follow-on-public offer (FPO) opened. The Hindenburg report accused the Adani Group of accounting fraud and stock manipulation. The group has lost around $125 billion in market value in three weeks since the report came out. The Adani Group had denied Hindenburg’s allegations as being “malicious”, “baseless”, and a “calculated attack on India.
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Here’s a look at what analysts said on the outlook of the Adani Group’s stock.
Abhijeet from Tips2trade said, “Adani Total Gas was technically very oversold and hence a slight bounce back was always expected. However, the stock price needs to close above Daily resistance of Rs 971 to assure that a short term bottom is in place. 650 will now be immediate support.”
Anshuman Khanna – Director, ValPro and Enablers said, “The stock of ATGL after hitting consecutive lower circuits for many sessions, saw a reversal for the first time in trading on March 1, 2023. This trend when seen in the context of volumes transacted seems to indicate that much of the selling pressure on the stock which was precipitated by the Hindenburg report and other related triggers has eased off. The Hindenburg report and media reports caused many foreign shareholders to take a decision to exit their holdings of Adani Group stocks with these stocks being re-assessed for weightage in indices as well as in ESG portfolios. As a consequence many shareholders who peg their shareholding of Indian stocks to such indices including ESG indices, necessarily pared down their holding over the last multiple sessions since January 27th 2023. Given that there has been no change in the fundamentals of the underlying business between January to March 2023, the price correction triggered by the selling by the aforesaid funds seems to be coming to an end with the selling orders getting completed. For a long-term investor, there is no trigger for a sell decision as there is no change in the underlying business. However, an investor looking to enter the stock would do well to do so in tranches rather than rushing into the stock in one go.”
