Adani Enterprises shares resume climb, settle 3% higher today; here's what analysts say

After a single-day pause, Adani Enterprises Ltd shares turned positive on Thursday in a volatile trading session. The stock today rose 2.92 per cent to close at Rs 2,548 over its previous close of Rs 2,475.60 on BSE. It has surged 34.34 per cent in the past five days. The scrip has settled 2.39 per cent higher at Rs 2,536.10 on BSE today. Around 8.35 lakh shares changed hands, which was lower than the two-week average volume of 9.52 lakh shares. Turnover on the counter stood at Rs 206.27 crore, commanding a market capitalisation (m-cap) of Rs 2,89,115.68 crore.

The counter has witnessed major highs and lows in the last 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.

Leading bourses BSE and NSE have put the securities of Adani Group's flagship firm under the short-term ASM (Additional Surveillance Measure) framework. The parameters for shortlisting securities under ASM include high-low variation, client concentration, number of price band hits, close-to-close price variation and price-to-earnings (P/E) ratio. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

On the technical setup, support on the counter could be seen at Rs 2,400, followed by Rs 2,380 and Rs 2,350 levels, analysts said.

AR Ramachandran from Tips2trades said, "Adani Enterprises has strong support now at Rs 2,400 on the daily charts. A close below this support could lead to a lower target of Rs 1,983 in the near term. Strong resistance will be at Rs 2,750.

VLA Ambala, Research Analyst at Stock Market Today, said, "The stock has immediate support in the Rs 2,380-2,350 range. If it breaks below the mentioned levels, we may see the Rs 2,100-2,050 range. Investors are likely to get this opportunity very soon and then they can buy the dip. Keep a stop loss placed at Rs 1,340," said VLA Ambala, Research Analyst at Stock Market Today.

Adani Enterprises traded higher than the 5-day, 20-, 50- and 100-day moving averages but lower than the 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 73.16. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a P/E ratio of 174.01. It has a price-to-book (P/B) value of 20.26.

The scrip has a one-year beta of 2.03, indicating high volatility.

Meanwhile, Indian equity benchmarks settled on a higher note today, led by gains in consumer, metal, automobile and technology stocks.