Adani Ports' stock rally has fizzled out in the short term, price targets range from Rs 1,300 to Rs 1,700 

Shares of Adani Ports and Special Economic Zone have delivered  better returns in the long term compared to the period less than one year. Adani Ports stock gained 42.19% in 2024 and rose 80.32% in a year. In three years, the Adani Group stock climbed 123% and clocked returns of 326% in five years. However, in the last six months, the stock gained merely 13%. It slipped 1.20% in a month and lost 3% in the last two weeks.

On Friday, Adani Ports stock ended 0.15% lower at Rs 1490.20 against the previous close of Rs 1492.40 on BSE. The stock hit a 52 week high of Rs 1607.95 on August 25, 2024 and fell to a 52 week low of Rs 754.50 on October 26, 2023.          

Market cap of the firm stood at Rs 3.20 lakh crore on BSE today. Total 0.11 lakh shares of Adani Ports changed hands amounting to a turnover of Rs 1.67 crore. Adani Ports stock has a one-year beta of 1.9, indicating very high volatility during the period.  

Analysts have mixed views on the outlook of the stock. 
 
Anshul Jain, Head of Research, Lakshmishree Investment & Securities said, "Adani Ports is currently experiencing significant volatility, with technical indicators on the daily charts signaling potential bearish movements. Over the past 12 days, the stock has formed a bearish flag pattern, a continuation pattern that typically suggests further downward movement after a period of consolidation. Earlier, the stock attempted to complete a bullish cup and handle formation, but it appears to have failed, adding to the bearish sentiment. A critical support level lies at Rs 1,480. Should the stock break below this level, a further decline toward the Rs 1,430 mark could be anticipated in the near term. Despite this short-term bearish outlook, long-term investors may find a silver lining. The current dip is likely a retracement in a broader bullish trend, presenting a potential buying opportunity." 

Kushal Gandhi, Technical Analyst, StoxBox said, "Based on the analysis, Adani Ports encountered mild profit booking subsequent to testing the overhead resistance zone of Rs 1,620- Rs 1,590. Nevertheless, the stock's price action displayed resilience against further drawdowns, with the upward-sloping 50-day moving average serving as immediate support. Moreover, the stock demonstrates improving earnings per share and price price strength relative to both peers and the market, and buyer demand, all of which are favourable indicators. Given the lower risk and potentially higher rewards presented by the current price action, it is recommended to consider purchasing Adani Ports with a target price of Rs 1,700, while maintaining a stop loss at Rs 1414."

Hardik Matalia, Derivative Analyst, Choice Broking said, "On the resistance side, a decisive break above the Rs 1,500 level could open the door for a move toward Rs 1,600 and potentially new highs. On the flip side, Rs 1,420 would act as an important support zone. The overall technical structure remains positive, further reinforced by the stock's favorable positioning above key moving averages. Adani Ports is in a strong uptrend, with indicators pointing towards sustained bullish momentum. The stock is near its support levels, along with a neutral RSI, suggesting significant potential for further upside. Investors may view this as a favorable opportunity to accumulate shares, anticipating a breakout that could propel the stock to new highs. The long-term trend remains firmly positive, reinforcing a bullish outlook for the stock."

Manish Shah, an independent Market Analyst said, "Adani Ports trades in a very narrow price movement between Rs 1520- Rs 1450 for some time. The price action does not show any directional movement as of now. For investors should wait for some confirmed direction before on-boarding Adani Ports. Such a narrow movement may result in sharp movement on either side. Major support is at Rs 1410-1420. A break below support will lead price decline to Rs 1300-1310. Upsides are capped at Rs 1600-1620. Wait and watch the price for some time."

In terms of technicals, the relative strength index (RSI) of Adani Ports stands at 48, signaling it's trading neither in the overbought nor in the oversold zone. Adani Ports shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day but higher than the 100 day, 150 day and 200 day moving averages.