Adani Total Gas shares down 14% in two days; can stock hold Rs 1,000 level?

Shares of Adani Total Gas extended their fall for the second straight session in Wednesday's trade. The stock slumped 10 per cent to hit a lower circuit of Rs 1,001.95. At this price, the scrip has declined 14.49 per cent in just two sessions. Despite the mentioned fall, the counter has ascended by around 85 per cent in the past month.

Bourses BSE and NSE have put the securities of Adani Total 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.

On technical setup, analysts largely suggested that the stock looked 'weak'. Support on the counter could be seen at Rs 975. On the higher side, resistance may be found around the Rs 1,150-1,185 zone.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 975 and resistance may be seen around Rs 1,100. Expected trading range could be between Rs 900 and Rs 1,150 for next couple of months."

AR Ramachandran from Tips2trades said, "Adani Gas is bearish on daily charts with strong resistance at Rs 1,185. A daily close below Rs 1,035 could lead to target of Rs 887 in the near term."

DRS Finvest founder Ravi Singh said the stock is looking weak on charts. It may see Rs 900 level in the near term, Singh mentioned.

The counter was last seen trading lower than the 5-day simple moving average (SMA) but higher than the 10-day, 20-, 30-, 50-, 100-, 150-, 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 68.94. 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 215.51 against a price-to-book (P/B) value of 37.96.

Adani Total Gas is a joint venture between France's energy major TotalEnergies and Adani Group.

All Adani Group stocks -- including Adani Total -- have recently logged decent gains after it was reported that the US government found short-seller Hindenburg Research's allegations of corporate fraud against Indian billionaire Gautam Adani "irrelevant".

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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