Adani Total Gas shares zoom 110% in a month; what's next on technical charts?

Shares of Adani Total Gas Ltd snapped their sharp four-day upward run in Friday's trade. The stock was last seen trading 1.73 per cent lower at Rs 1,139. At this price, the multibagger scrip has gained 109.78 per cent in the past one month. Out of which, 53 per cent of the spike came in last five sessions. Despite the mentioned rise, the stock was down nearly 68 per cent on a year-to-date (YTD) basis.

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.

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

The Adani counters saw a massive wealth erosion following a scathing attack by the US-based short seller earlier in January this year. Some of the conglomerate's shares have regained their lost ground while a few are still in process of recovering from the said drop.

Also read: Adani Total Gas shares hit upper circuit; stock turns multibagger in a month

On technical charts, immediate support for Adani Total's stock could be seen at Rs 1,050. On the higher side, resistance may be found around Rs 1,273. Two analysts suggested that investors should book profit at current levels.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The counter has witnessed a stellar rally, so one must avoid complacency. Rs 1,050-1,000 is likely to provide some cushion, while strong support lies around Rs 900 level. On the higher end, till it sustains above the mentioned support zone, dips are likely to get utilized for long positions for an upside potential of Rs 1,250-1,260 on an immediate basis."

AR Ramachandran from Tips2trades said, "Adani Total Gas looks bearish and extremely overbought on daily charts with next resistance now at Rs 1,273. Investors should book profits at current levels as a daily close below support of Rs 1,102 could lead to a target of Rs 808 in the near term."

DRS Finvest founder Ravi Singh also said that the stock may see some profit booking. It may slip towards Rs 1,050 in the near term, Singh mentioned.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 1,050 and resistance may be seen around Rs 1,300. The stock could see a trading range between Rs 1,000 and Rs 1,450 in the next couple of months."

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

(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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