3 Adani group stocks out of ASM, Should you be bullish?

Adani Enterprise, Adani Power and Adani Wilmar may rise up 35 per cent upon conquering key hurdles

Shares of Adani Enterprises, Adani Power and Adani Wilmar will be in spotlight post both the stock exchanges; NSE and BSE, removed them from additional surveillance measure (AMS) on March 17. 

Despite having various protective measures to safeguard and protect the interest of investors, the Securities and Exchange Board of India (SEBI) has implemented ASM. In ASM, the additional surveillance monitor activities on stock price, volume, variation, volatility, etc.

On March 8, three companies of Adani group were added in the ASM following a sharp decline in their stock prices raising volatility, led by the report of Hindenburg. The sentiment towards the group was dampened, which could have resulted in an unprecedented scenario in the near future. 

Adani Enterprise has plummeted 55 per cent, Adani Power has plunged 53 per cent and Adani Wilmar has tumbled 51 per cent from their respective historic peaks. Majority of the drawdown was seen post the release of the Hindenburg report. Lately, all the three stocks had lost close to 75 per cent in value as the street sentiment towards the group was severely affected.

On Monday, all the three companies opened with a negative gap. In comparison to the benchmark indexes, which slipped 0.80 per cent, shares of Adani Enterprises plunged 3.50 per cent, Adani Power lost 3.80 per cent and Adani Wilmar fell 2.50 per cent.

Here’s the technical outlook of adani group stocks, which were removed from ASM:- 

Adani Enterprises Ltd (ADANIENT)

Outlook: Breakout over Rs. 2,200 could see a rally to Rs 3,000

The current scenario for the Adani Enterprises shares look uncertain, however if the counter manages to trade within the range of Rs 1,900 to R 1,500; forming some base, a breakout over Rs 2,200 thereafter could steer a medium-term upside.

At present, the key support range for the stock exists at Rs 1,600 to Rs 1,400 levels. While there is a formation of a “Death Cross”, having a neckline breakdown below Rs 1,100, sustainability over the same range shall aim at accumulation, as per the daily chart.

A rally over Rs 2,200 could see a breakout of “Inverse Head and Shoulder”, leading the stock towards Rs Rs 2,800 and Rs 3,000 levels. CLICK HERE FOR THE CHART

Adani Power Ltd (ADANIPOWER)

Outlook: Breakout over the 50-DMA

Shares of Adani Power must surpass the hurdle of Rs 207, its 50-day moving average (DMA) to claim a positive bias. Until then, the stock is expected to witness selling pressure on every rise. 

The technical indicator, the Moving Average Convergence Divergence (MACD) has risen over the zero line, suggesting if the stock manages to conquer the 50-DMA, it may retrieve the losing momentum. 

Immediate support falls at Rs 180 and Rs 160 levels. A move over the 50-DMA may see the counter heading towards Rs 240 and Rs 260 levels. CLICK HERE FOR THE CHART

Adani Wilmar Ltd (AWL)

Outlook: Stock to hit Rs 500 and Rs 525, once the 50-DMA is surpassed. 

After slipping to a new 52-week low of Rs 327 in February of this year, the stock indicated a smart reversal which received a resilient sell-off near the 50-DMA mark. Thus, the counter’s bullish bias is set over this barrier of Rs 461, its 50-DMA. Once this mark is conquered, the stock may see an upside towards Rs 500 and Rs 525 level. 

Immediate support for the stock exists at Rs 400 and Rs 485 levels, as per the daily chart. CLICK HERE FOR THE CHART