Shares of Adani Green Energy Ltd (AGEL) continued their strong upward march for the third consecutive session in Friday's trade. The stock soared 25.82 per cent to hit a day high of Rs 1,369.15. At this price, it has rallied 52.23 per cent in just 3 trading days. In sync, stocks of other nine listed Adani Group entities also traded in the positive territory today.
The fresh strength in Adani counters appeared as big investors kept their faith in the group after its clarification on the alleged US bribery case. The Indian conglomerate claimed that there were no bribery charges against Gautam Adani and other group executives. It also said that its portfolio companies have sufficient liquidity to cover all debt servicing requirements for at least the next 12 months.
Bourses BSE and NSE have put the securities of AGEL under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
The stock saw heavy trading volume today as around 21.12 lakh shares were last seen changing hands on BSE. The figure was higher than the two-week average volume of 9.22 lakh shares. Turnover on the counter came at Rs 262.83 crore, commanding a market capitalisation (m-cap) of Rs 2,06,969.68 crore.
Technically, support for AGEL's stock could be seen in the Rs 1,150-1,000 range. And, upside is capped in the Rs 1,400,1,400 zone in the near term.
"Rs 1,400 is likely to be seen as an intermediate hurdle and a decisive surpass could only trigger fresh buying traction in the counter. On the lower end, Rs 1,100 is likely to cushion any upcoming blips, followed by Rs 1,000 mark," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Adani Green can hit an upside target of Rs 1,440. Keep stop loss placed at Rs 1,150 for this trade," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
"Strong support on the counter could be seen at Rs 1,000. That said, it can hit an upside target of Rs 1,400 in the near term," said Sebi-registered research analyst AR Ramachandran.
Last week, US authorities accused Adani, his nephew and executive director Sagar Adani and managing director of AGEL, Vneet S Jaain, of being part of a scheme to pay bribes to secure Indian power supply contracts and misleading US investors.
The Adani Group has denied the accusations in the US indictment as baseless and said it will seek all legal recourse.
The fresh charges follow much turmoil for the Adani Group in January last year when US-based short seller Hindenburg Research accused it of using offshore tax havens improperly - a charge that the Indian conglomerate has denied.