Technical Analysis

Adani Enterprises (₹129.2): Sell

Yoganand D BL Rsearch Bureau | Updated on May 02, 2018 Published on May 02, 2018

The stock of Adani Enterprises plunged 7.7 per cent with above average volume on Wednesday, decisively breaching its key short-term support at ₹135 and 200-day moving average. With this fall, the stock appears to have resumed its medium-term downtrend that has been in place from this February high of ₹193.

Investors with a short-term perspective can consider selling the stock at current levels. Key resistance at ₹154 capped the stock’s upside in early April. Since then, the stock has been in a short-term downtrend. The stock trades well below its 50- and 200-day moving averages.

The daily relative strength index has entered the bearish zone from the neutral region while the weekly RSI continues to chart lower in the neutral region. Both the daily and weekly price rate of change indicators feature in the negative terrain implying selling interest.

The short-term outlook is bearish for the stock. It can extend its current decline and reach the price targets of ₹124 and ₹121.5 in the upcoming trading sessions. Traders with a high-risk appetite can sell the stock with a stop-loss at ₹132.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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