Adani Enterprises shares rise 10% amid heavy volumes; Here are the key levels to watch out

Shares of Adani Enterprises Ltd surged 10 per cent, locked in the first circuit limit, during the trading session on Tuesday amid the multiple news flow and heavy trading volumes at the opening. Even the other Adani Group stocks were rallying higher, signaling optimism, surging as much as 20 per cent.

Shares of Adani Enterprises, the flagship company of the Adani Group, surged as much as 10 per cent during Tuesday's trading session, at Rs 2453.45 with a total market capitalization of close to Rs 2.80 lakh crore for the day. The scrip had settled at Rs 2230.45 in the previous trading session on Friday.

Adani Enterprises' shares have surged about 135 per cent from its 52-week low at Rs 1,017.10 hit in February 2023 this year, following Hindenburg's damning report. However, the stock is down 40 per cent on the year 2023 so far, and is down about 45 per cent from its 52-week low at Rs 4,189.55 hit in January 2023.

On the BSE, 3.66 lakh equity shares of Adani Enterprises worth Rs 85.77 crore were trading as of 10.25 am on Tuesday, which is much higher than its two-week average. However, 33.94 lakh equity shares of the company amounting to Rs 795.38 crore exchanged hands on the National Stock Exchange for the day.

Adani Enterprises has been the worst performer in the Nifty50 pack in the last three-four-month period, falling about 12 per cent. However, it witnessed a strong buying interest on Monday from the traders and analysts believe that technical setup confirms the same.

Adani Enterprises has been constantly making lower-top lower-lows since the last 3 months or so, which is a sign of some weakness. Recently, Adanient has violated the bearish trendline, which is looking lucrative, said Jigar S Patel - Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers.

"Thus, one can buy in the zone of Rs 2,350–2,400 for a target of Rs 2,650, and the stop-loss would be Rs 2,238 on a daily close basis. One can expect 2,300–2,650 as a trading zone for Adani Enterprises for the next month," he said.

Brijesh Ail, Head Technical & Derivatives at IDBI Capital Markets & Securities, in an interaction with Business Today TV said that Adani Enterprises is signaling a buy set up on the daily charts. One can expect the momentum to continue up to Rs 2,360-2,370 with a resistance at Rs 2,330.

Other analysts are not very positive on the stock in the technical terms. Adani Enterprises made a lower top lower bottom formation on the daily chart, which is a sign of weakness said Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets

"At present, the stock has taken support at the demand zone of Rs 2,140 – 2,160. The momentum indicator, the RSI, is giving positive divergence, which suggests that the momentum on the upside is likely to continue. Hence, one can hold the stock at current prices with a stop loss of Rs 2,130 for target of Rs 2,490-2,610 levels in the next couple of weeks," he said.

The total market capitalization of Adani Group's stocks listed entities inched closer to Rs 11 lakh crore mark. The group added about Rs 67,000 crore in its cumulative m-cap as the Supreme Court reserved order in the Adani-Hindenburg case after hearing multiple pleas in the matter.

The apex court said that the Hindenburg Research report should not be treated as a statement of truth. Sebi told SC that it won't be asking for any more extension to complete its probe in the Adani-Hindenburg matter.

Earlier this year, US-based short seller, Hindenburg Research published a report on January 24, 2023 wherein it accused the Adani Group of engaging in fraudulent activities to artificially inflate its stock prices. However, the Gautam Adani-led conglomerate has consistently denied these allegations with a detailed rebuttal.

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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