Adani Enterprises Closes 14.8% Higher, Most Group Stocks End With Gains

Most Adani Group stocks ended higher on Tuesday, recouping some of the losses suffered over the past 10 days after the Hindenburg Research report came out.

The trading was suspended three times during the day for Adani Enterprises Ltd. as it surged the maximum 20%. The stock pared some of the gains to end 14.8% higher, bouncing back from the slide of the last two weeks.

According to Rajesh Palviya, analyst at Axis Securities Ltd., Rs 2,000 will act as a crucial resistance but it is still down 40% from its recent highs.

"There has been significant shedding of open interest on the stock since Jan. 23, which stands at almost 40 lakh shares," Palviya said "We have witnessed some short covering in Tuesday's session. However, overall five-six days data indicates some short built up in the system."

"Till spot price does not cross over Rs 2,000, we will continue to see shorts on the stock," he said.

According to him, some consolidation can be expected in the stock in the range of Rs 1,500–2,000 levels.

"Once the stock crosses Rs 2,000 levels, we can see a bout of short covering. Advise to keep a stop loss at Rs 1,600 levels on the stock."

ACC Ltd. ended higher in Tuesday's session with gains of 1.3%. Stock is outperforming other Adani Group companies and is down 17% from its recent high in 2023.

The stock is witnessing addition of open interest, which is indicating there is a long build up in the stock and leading to fresh buying.

Palviya finds ACC to be an attractive bet and expects some outperformance to continue. He advises traders, who have bought ACC at lower levels, to hold their position for a target of Rs 2,200, as fresh buying action is being triggered and to maintain a stop loss at Rs 1,850.

Adani Ports and SEZ Ltd. ended 1.9% higher and the stock was in the futures and options ban. The stock has recovered nearly 26% from recent lows. However, it is down more than 50% over the past two weeks.

Palviya said the stock is trading above its immediate support area of Rs 530 levels.

"Rs 500 is the important support area, and if the stock continues to trade above levels of Rs 520, we can expect to see some more recovery in the stock," he said.

"If it manages to cross above Rs 620 levels, we can expect another round of short covering," Palviya said. "Once the stock comes out of the ban period, we may see some more recovery. Expect Rs 620–640 as the next target with a stop loss at Rs 520."

Ambuja Cements Ltd. ended 2% higher and the stock was in the F&O ban.

Stock has shown short covering, recovering from levels of Rs 300 to Rs 400 levels as well.

Palviya said looking at the short covering action in previous sessions, some shorts are out of the system and value buying has happened in Ambuja Cements. He said even in the recent fall, the stock has managed to hold its breakout area at Rs 290–285 levels.

"Long-term charts suggest bullish outlook on the stock. If the stock continues to hold above Rs 350 levels, then it has the potential to move towards Rs 430–450 levels, which will act as a stiff resistance," he said.

Adani Power Ltd. ended 5% lower in trade on Tuesday. Over the last three trading sessions, the stock is in the framework of additional surveillance measures. Hence, the delivery percentage is 100%.

The stock is down 50% from the recent highs of 2023. "The stock is trying to hold important support levels of Rs 165–170. If the stock breaks support, then it can go down to Rs 135 levels. Above Rs 165–170, we can see some buying."

If the stock breaks Rs 160 levels, he advises traders to exit the stock, and if it moves higher, then they should book profits at Rs 200 levels.

Adani Green Energy Ltd. ended 5% lower and the NSE had revised the price band to 10% from 20% last week.

"The stock is witnessing supply pressure on the higher side. Till the stock does not cross Rs 1,000 levels, there will be a struggle to give some substantial pullback and the trend looks weak," Palviya said.

Rs 800 is a major support for the stock, which witnessed a delivery percentage of 31.95%, he said.

Adani Transmission Ltd. was locked in the upper circuit during the day and ended 0.5% lower. The NSE had revised its price band to 10% from 20% last week. Stock has shown a recovery from recent lows.

"Until the stock does not cross Rs 1,600 to 1,700 levels, it will remain under pressure," Palviya said.

He advised to keep a strict stop loss at Rs 1,050 levels and book profit at Rs 1,550 to 1,600 levels if one buys at current levels.

The stock witnessed a delivery percentage of 30.26%.

Adani Wilmar Ltd. shares halted an eight-day losing run, ending 4.99% higher on Tuesday. The stock climbed 4.99% to hit a day's high of Rs 399.4.

At today's high price of Rs 399.40, the scrip has lost 30.32% in eight days. The counter has declined 54.53% from its 52-week high of Rs 878.35, which was hit on April 28 last year.

"If the stock continues to hold above Rs 360–365 zone on a weekly-closing basis, we can see some positivity as it is oversold," Palviya said.

He said there could be chances of pullback and advised to book profit at Rs 440–450. The percentage of deliverable quantity to traded quantity was at 30.66%, he said.

Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.