Adani Ports shares hit fresh one-year high, up 17% in two sessions; is more steam left?

Shares of Adani Ports and Special Economic Zone Ltd extended their sharp gains for the second consecutive session in Tuesday's trade. The stock surged 10.26 per cent to hit a fresh one-year high of Rs 968.90. At this price, it has gained 17.08 per cent in just two days.

All listed Adani Group stocks, including Adani Ports, logged decent gains today after it was reported that the US government found short-seller Hindenburg Research's allegations of corporate fraud against Indian billionaire Gautam Adani "not relevant". US agency DFC examined Adani before extending a loan for Sri Lanka port project, the report further mentioned.

In a separate development, the port operator said it recorded a 42 per cent, year-on-year (YoY growth) in November 2023 cargo volumes and became the country's first terminal to handle over 3,00,000 containers in a month.

On technical setup, the stock may find immediate resistance around Rs 970 level. A decisive breach above the said level is required for further upside, an analyst said. On the other hand, another analyst suggested booking profits at current levels.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Adani Ports has seen strong traction from the last couple of trading weeks, which levitated the counter above all its EMAs (Exponential Moving Averages) on daily charts. The counter has seen a breakout from the Rs 820-odd zone. On an immediate basis, Rs 860-850 is likely to cushion a blip, with strong support around the aforementioned breakout zone. While on the higher end, Rs 970 is likely to be seen as immediate resistance, breaching which the counter is expected to test uncharted territory."

AR Ramachandran from Tips2trades said, "Adani Ports looks overbought and bullish on daily charts with next resistance at Rs 995. Investors should book profits at current levels as a daily close below support of Rs 905 could lead to Rs 798 in the near term."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "As we advance, support is expected near Rs 910–920 levels and resistance is placed near the Rs 980–955 zone. Rs 920–925 would be the ideal zone for adding fresh longs."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 81.32. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 239.31 against a price-to-book (P/B) value of 6.73.

The scrip has an analyst target price of Rs 929, Trendlyne data showed, suggesting a potential downside of 2 per cent in a year.

As of September quarter, promoters held 65.53 per cent stake in the company.

On BSE, around 18.89 lakh shares were last seen changing hands today. The figure was way more than the two-week average volume of 3.33 lakh shares. Turnover on the counter came at Rs 177.65 crore, commanding a market capitalisation (m-cap) of Rs 2,05,148.40 crore.

Also read: Adani Green Energy shares surge 7% as Adani firm seals $1.36 billion funding

(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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