Adani Total Gas shares extend fall, slip 4% today; here's what tech charts hint

Shares of Adani Total Gas on Thursday extended their fall for the second straight session. The stock dropped 3.73 per cent to hit a day low of Rs 903 over its previous close of Rs 938. At today's low price, the stock has rebounded 37.86 per cent from its 52-week low of Rs 655, hit on March 1, 2023. Yet, the counter has slumped 77.42 from its one-year high level of Rs 3,998.35, touched on January 23 this year.

A total of 43,000 shares changed hands today on BSE, which was lower than the two-week average volume of Rs 1.63 lakh shares. Turnover on the counter stood at Rs 3.98 crore, commanding a market capitalisation (m-cap) of Rs 1,00,005.73 crore.

The stock was last seen trading higher than the 5-day moving averages but lower than the 20-day, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 42.58. 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 205.76.

Ravi Singh, Vice-President and Head of Research, Share India, "Adani Total Gas is in a highly volatile zone and may see some more correction in coming days. The major technical parameters are in the negative zone showing inherent weakness in the counter. Under the current scenario, it may touch the Rs 800 level in the near term."

AR Ramachandran from Tips2trades said, "Rs 995-1,030 continues to remain a strong resistance zone for Adani Total Gas on the daily charts. Rs 858 is a strong support level and below which a further fall till Rs 804 looks possible."

That said, Adani Total has an average target price of Rs 3,475, Trendlyne data showed, suggesting a potential upside of 282.29 per cent. The scrip has a one-year beta of 1.58, indicating high volatility.

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

Adani Group shares saw a massive market value erosion since January 24, when US-based short seller Hindenburg Research released a report alleging stock manipulation and accounting fraud by the Gautam Adani-led conglomerate. Adani Group, however, denied all the allegations.

The stocks rebounded after US boutique investment firm GQG Partners announced a cumulative investment of Rs 15,446 crore in four Adani firms -- Adani Enterprises, Adani Green, Adani Ports and Adani Transmission.

Meanwhile, Indian equity benchmarks traded lower in early deals today, halting their eight-day winning run as technology, metals and pharma stocks declined.

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