Adani Ports shares rise over 7%; can they hit Rs 950 mark?

Shares of Adani Ports and Special Economic Zone Ltd (APSEZ) zoomed over 7% today amid a rally in the Adani Group stocks. Adani Ports stock climbed 7.23% to Rs 854 against the previous close of Rs 796.40 on BSE.

Market cap of the firm climbed to Rs 1.83 lakh crore on BSE. Total 8.03 lakh shares of the firm changed hands amounting to a turnover of Rs 69.13 crore. Adani Ports stock has a one-year beta of 0.3, indicating very low volatility during the period.

Adani Ports shares have slipped 2.39 per cent in one year and fallen 5 per cent since the beginning of this year. In terms of technicals, the relative strength index (RSI) of Adani Ports stands at 46.3, signaling it's trading neither in the overbought nor in the oversold zone. Adani Ports shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

With today’s rally, Adani Ports shares fell marginally short of hitting the target of Rs 855 assigned by international brokerage Goldman Sachs.

Goldman Sachs maintained its 'Buy' rating on Adani Ports and revised its target price to Rs 855 compared with Rs 820 earlier, saying the stock should do well from hereon, especially if growth in H2 surprises. The foreign brokerage was expecting the Adani Group firm to report a volume of 407 million tonnes, which would be far higher than the company's FY24 volume guidance of 370-390 million tonnes.

Gaurav Bissa, Vice-President, InCred Equities said, "Adani Ports has witnessed tremendous volatility since the last few months. It has witnessed a strong bounce after retesting the 13-year rising trendline breakout at around Rs 600 levels. It failed to give a bullish flag breakout on the weekly charts resulting in a strong correction. After a strong bounce recently, the stock is trading near a falling trendline breakout and a close above Rs 880 is likely to push it towards Rs 950 levels. A weekly close above Rs 950 will trigger a major consolidation breakout which can result in the start of a fresh uptrend."

Abhijeet from Tips2trades said, “Adani Ports is bullish on the daily charts with next resistance at Rs 867. Only a daily close below the support of Rs 818 could lead to target of Rs 786 in the near term."

Adani Ports & Special Economic Zone reported a 27.6% rise in its revenue to Rs 6,646.4 crore in Q2 compared to Rs 5,210.8 crore last year.

Operating profit or EBITDA climbed 35% from last year to Rs 4,053 crore, while net profit grew by 4.2% to ?1,747.8 crore.

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