Shares of Adani Wilmar, the FMCG arm of the Adani Group, are down 56% from their record high. The Adani Group stock, which hit a record high of Rs 878.35 on April 28, 2022, was trading at Rs 356 in the current session. The stock has delivered flat returns of 2% and 6% in a year and on a year-to-date basis, respectively.
However in terms of price action, Adani Wilmar stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. It signals the stock is trading in a bullish zone in both short and long term.
In the current session, the stock was trading 2.15% lower at Rs 385 on BSE.
Market cap of the firm stood at Rs 50,037 crore.
Total 3.16 lakh shares changed hands amounting to a turnover of Rs 12.43 crore on BSE. The stock has lost 46% in two years. Adani Wilmar stock has a one-year beta of 0.9, indicating average volatility during the period.
Commenting on the short-term trading strategy for the stock, Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher said, "The stock recovered significantly from Rs 350 level. Currently, it has indicated a strong spurt with huge volume participation. The stock needs to cross its tough resistance barrier of Rs 410 decisively to establish conviction and anticipate a fresh upward move in the coming days for the next higher targets of Rs 440 and Rs 464."
Anshul Jain, Head of Research, Lakshmishree Investment & Securities said, "Adani Wilmar is currently displaying a robust technical setup on its daily chart, forming a 108-day rounding VCP (Volatility Contraction Pattern). This pattern is often seen in strong accumulation phases where institutional investors quietly build positions. Over the past few weeks, the stock has shown a notable contraction in volumes within its base, indicating a reduction in supply as weaker hands exit. What makes this setup particularly intriguing is the recent price movement toward the neckline of this pattern, now supported by increasing volumes. This rise in volume suggests that buying interest is returning, potentially setting the stage for a breakout. The key level to watch is Rs 408, where significant supply has previously halted the stock’s advance. A decisive breakout above Rs 410, backed by high volumes, could act as a strong propeller, pushing the stock towards its near-term target of Rs 460."