Adani Enterprises, part of Adani Group Companies, rose a little over 50 per cent in the last year and chart patterns suggest that the upside is likely to continue.
The stock hit a 52-week high of Rs 2420 on 27 April 2022 but then the trend went sideways. Recent price action pushed the stock above the 50-DMA which is a positive sign.
Short-term traders can look to buy the stock now or on dips for a possible target of Rs 2800 which would result in fresh 52-week highs in the next 6 months, suggest experts.
The stock with a market capitalisation of more than Rs 2.5 lakh crore made a double bottom above Rs 1500 levels back in February and March 2022 from where it bounced back sharply.
The stock can be bought now or on dips towards Rs 2085-1979-1876 and 1817. The first big support for the stock will come above Rs 1900 levels – a swing low formed on 26 May 2022.
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The Relative Strength Index (RSI) is placed at 56.3 as of 4 July 2022. RSI below 30 is considered oversold and above 70 is considered overbought. MACD is above its center and signal Line, this is a bullish indicator, Trendlyne data showed.
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On the price front, it is trading above all the crucial short and long-term moving averages such as 5,10,20,30,50,100 and 200-DMA on the daily charts which is a positive sign for the bulls.
The stock price started its up move from Rs 141 (June 2020) to Rs 1718 (June 21), making a series of higher bottoms and higher tops.
During the move, the stock continuously bounced back taking support of crucial averages and the SuperTrend indicator is in a positive mode to date on the weekly charts.
However, slight profit booking was seen which pushed the stock towards Rs 1345 in October 2021.
“From June 2021 to Jun 2022 the stock traded sideways but has been making continuously making higher bottoms making a new high of 2420 in April 2022,” Bharat Gala, President – Technical Research,
Securities Ltd., said.
“The Vortex, PVT, and on balance Volume Indicators suggest buying interest in the stock. The possible targets are 2800-3200-3600,” he said.
A Vortex indicator is used to spot trend reversals and confirm the trend while the PVT indicator or the price volume trend indicator is a momentum-based indicator used to measure money flow.
“If the stock price corrects downwards the buy levels are 2085-1979-1876-1817.
A stop loss to be observed in the trade is 1720,” recommends Gala.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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