These two Adani stocks hit 10% upper circuit again; placed under ASM categories

All 10 listed Adani Group shares continued to recover in Thursday's trade after the Indian conglomerate claimed that there were no bribery charges against Gautam Adani and other group executives. Out of which, two stocks, namely Adani Green Energy Ltd (AGEL) and Adani Energy Solutions Ltd (formerly known as Adani Transmission Ltd), scaled their respective 10 per cent upper price bands for the second consecutive session.

AGEL shares surged 10 per cent to hit a day high of Rs 1,088.20. On a similar note, shares of Adani Energy jumped 10 per cent to touch Rs 727.35.

Bourses BSE and NSE have put the securities of AGEL and Adani Energy 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.

"ASM framework is in conjunction with all other prevailing surveillance measures being imposed by the exchanges from time to time and as may be applicable. Further, it may also be noted that the shortlisting of securities under ASM is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company," BSE stated.

On technical setup, both AGEL and Adani Energy shares looked 'bullish' on daily charts. In the case of AGEL, support on the counter could be seen in the Rs 988-1,015 range.

"Adani Green stock price is bullish on daily charts with strong support at Rs 988.4. A daily close above resistance of Rs 1,141 could lead to an upside target of Rs 1,400 in the near term," said Sebi-registered research analyst AR Ramachandran.

"Support will be at Rs 1,015 and resistance at Rs 1,135. A decisive move above Rs 1135 level may trigger a further upside towards Rs 1,160. The expected trading range will be between Rs 1,000 and Rs 1,160 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

"The share price of Adani Green has recently faced significant selling pressure. We see a short-term opportunity given the oversold status, with a target price of Rs 1219 and recommend setting a stop loss at Rs 1,014," said Kushal Gandhi, Technical Analyst, StoxBox.

For Adani Energy shares, near-term support may be found in the Rs 661-683 zone.

"Adani Energy stock price is bullish on daily charts with strong support at Rs 661. A daily close above resistance of Rs 724 could lead to an upside target of Rs 871 in the near term," said Ramachandran.

"Support will be at Rs 680 and resistance at Rs 730. A decisive move above Rs 730 level may trigger a further upside towards Rs 760. The expected trading range will be between Rs 680 and Rs 760 for the short term," Patel stated.

"We foresee a short-term opportunity, targeting a price of Rs 829 and recommend implementing strict risk management by placing a stop at Rs 683," Gandhi mentioned.

AGEL, in a BSE filing, said, "Gautam Adani, Sagar Adani and Vneet Jaain have not been charged with any violation of the FCPA (Foreign Corrupt Practices Act) in the counts outlined in the indictment of the United States Department of Justice (DOJ) or civil complaint of the US Securities and Exchange Commission (SEC)."

"These directors have been charged on three counts in the criminal indictment namely (i) alleged securities fraud conspiracy, (ii) alleged wire fraud conspiracy, and (iii) alleged securities fraud," it added. AGEL further stated that the US indictment does not specify any quantum of any fine or penalty.

US authorities last week accused Adani, his nephew and executive director Sagar Adani and managing director of AGEL, Vneet S Jaain, of being part of a scheme to pay bribes to secure Indian power supply contracts and misleading US investors.

The Adani Group has denied the accusations in the US indictment as baseless and said it will seek all legal recourse.

The fresh charges follow much turmoil for the Adani Group in January last year when US-based short seller Hindenburg Research accused it of using offshore tax havens improperly - a charge that the Indian conglomerate has denied.