Shares of Adani Wilmar Ltd have rebounded 31% from their 52 week low within a month. The Adani Group stock, which hit a 52-week low of Rs 285.85 on November 20 this year was trading at Rs 375.30 in the afternoon session. However, Adani Wilmar shares slipped 6% intraday to Rs 372 on Friday against the previous close of Rs 395.45 on BSE.
Market cap of the firm fell to Rs 49,043 crore.
Total 5.65 lakh shares changed hands amounting to a turnover of Rs 21.73 crore crore on BSE. The stock has lost 37.88% this year. Adani Wilmar stock has a one-year beta of 0.8, indicating very low volatility during the period.
Commenting on the trading strategy for the stock, Deven Mehata, Equity Research Analyst at Choice Broking said, “Adani Wilmar has exhibited a significant correction from Rs 878 to Rs 285 levels, followed by a sharp rebound to around 400 levels. Over the past three weeks, the stock has consistently formed higher highs and higher lows on the weekly charts, indicating a potential reversal in trend.
The strong bounce is substantiated by robust volumes, suggesting increased market participation and confirming the strength of the upward move. Trading above all important moving averages further strengthens the bullish case. A substantial support level at 330, near the 20-Day and 50-Day EMA levels, enhances the stock's stability. For long-term investors, purchasing the stock on potential dips, with a stop loss at 330, is recommended.”
Also read: Adani Wilmar shares rise 7%, cross Rs 400 mark after four months
Abhijeet from Tips2trades said,"Adani Wilmar looks bullish and extremely overbought on the Daily charts with next resistance now at Rs 423. Investors should book profits at current levels as a daily close below support of Rs 380 could lead to a target of Rs 339 in the near term."
In terms of technicals, the relative strength index (RSI) of Adani Wilmar stands at 78.4, signaling it's trading neither the overbought territory. Adani Wilmar shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day but lower than the 200 day moving averages.
Adani Wilmar logged a strong double-digit volume growth on the back of strong rural sales, according to the company’s Q2 business update. However, in spite of growing volume, the value of sales declined on a year-on-year (YoY) basis.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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