Adani Green Energy shares lose steam after revisiting Rs 1,000 level; here's what analysts say

Shares of Adani Green Energy Ltd settled on a lower note in a highly volatile trading session. The stock jumped 5 per cent to hit a day high of Rs 1,038.95 in early deals but later gave up all its gains to close 0.52 per cent down at Rs 984.35. A majority of Adani Group stocks finished in the red today amid profit booking after a recent sharp rise seen between May 19 and May 23. At today's closing of Rs 984.35, the stock has gained 124.05 per cent from its 52-week low of Rs 439.35, hit on February 28, 2023. Yet, the scrip has lost 61.76 per cent from its one-year high of Rs 2,574.05, touched on August 23 last year.

The Adani Group firm postponed its planned board meeting on fundraising, scheduled for today, due to the non-availability of directors. "It may please be noted that on account of non-availability of Directors, the meeting of the Board of Directors is now cancelled. The next date of meeting will be informed with a fresh notice," Adani Green stated in an exchange filing.

This was the second instance in a month when the company rescheduled its board meet. The board meeting was earlier scheduled to take place on May 13.

In addition, a media report suggested that Adani Green is in talks with global fund managers to raise Rs 5,000-6,000 crore. The country's largest renewables company is likely reviving its capex plans four months after the Hindenburg setback.

In January this year, US-based short seller Hindenburg Research released a report alleging stock manipulation and accounting fraud by the Gautam Adani-led conglomerate. Adani, however, denied all the claims.

"On the technical setup, Adani Green looks to have taken resistance at the Rs 1,038-1,074 range on the daily charts today. A daily close below the support of Rs 952 could lead to lower targets of Rs 818-755 in the near term," said AR Ramachandran from Tips2trades.

"In terms of technical aspects, the stock has resistance around Rs 1,050 levels. If the price can hold Rs 1,000 levels, then upward targets between Rs 1,200 and Rs 1,400 could be possible. Keep stop loss placed at Rs 810," says VLA Ambala, Research Analyst at Stock Market Today.

The stock traded higher than the 5-day, 20- and 50-day moving averages but lower than the 100-day and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 62.34. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 475.38. It has a price-to-book (P/B) value of 27.57.

Meanwhile, Indian equity benchmarks halted their three-day winning run and finished lower. The domestic indices were dragged by banks, financials and metal stocks. The 30-share BSE Sensex pack fell 208 points or 0.34 per cent to end at 61,774, while the broader NSE Nifty index moved 63 points or 0.34 per cent down to settle at 18,285.