Shares of Adani Total Gas Ltd are trading near 52-week low in a majority of sessions in a month. The Adani Group stock, which hit a yearly low of Rs 633.35 on May 19, 2023, was trading at Rs 656.50 in the afternoon session today. Except for a brief period of seven days from May 22 to May 29 in which the scrip went up to Rs 795, the stock has traded near levels close to its 52-week low. The weakness in the Adani Total Gas stock is reflected by a bearish pattern on the weekly charts continuation of which can take the stock below the Rs 600 mark, said an analyst.
In the current session, the stock touched an intraday low of Rs 653.15 against the previous close of Rs 655.90 on BSE.
Adani Total Gas stock has lost 71 percent in a year and fallen 81.52 per cent in 2023. Market cap of the firm fell to Rs 72,125 crore on BSE. A total of 0.98 lakh shares of the firm changed hands, amounting to a turnover of Rs 6.41 crore on BSE.
In terms of technicals, the relative strength index (RSI) of the Adani Total Gas stock stands at 35.4, signaling the stock is trading neither in the oversold nor overbought zone. Adani Total Gas has a one-year beta of 1.6, indicating very high volatility during the period. Adani Total Gas stock is trading lower than the 5 day and 20 day, 50 day, 100 day and 200 day moving averages.
Analysts are not very optimistic on the outlook of the stock.
Gaurav Bissa, VP, InCred Equities said, “Adani Total Gas or ATGL has witnessed a strong correction in the last few months. However, unlike the other Adani group stocks, this has failed to witness any meaningful upside. On the contrary, it has formed a bearish cup and handle pattern on the weekly charts which is a bearish continuation pattern. A weekly close of Rs 630 will trigger this pattern, which can push the stock towards Rs 550 levels. It is advisable to exit the position at this point in time or keep a strict stop loss of Rs 630."
Abhijeet from Tips2trades said, "Adani Total Gas stock price is bearish with strong resistance at Rs 683 on the daily charts. Investors should buy only if daily close is above mentioned resistance for higher targets of Rs 770-823 in the near term. Support will be at Rs 633."
Adani Total Gas Ltd—the joint venture of Adani group and TotalEnergies of France which retails CNG to automobiles and piped gas to households—reported a 21 per cent rise in net profit for the quarter ended March.
Net profit climbed to 20.74% to Rs 97.91 crore in January-March quarter compared to Rs 81.09 crore profit in the corresponding period a year ago. Revenue from operations rose 12.37% to Rs 1197.31 crore in Q4 from Rs 1065.48 crore in the year-ago period. Revenue in the December quarter stood at Rs 1185 crore.
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