Investors with a short-term perspective can sell the stock of Adani Enterprises at current levels. Following a sideways consolidation phase, the stock broke a key resistance around ₹520 in January. However, it encountered a barrier at its significant long-term resistance band between ₹700 and ₹720 in late February. The stock subsequently began to weaken and the indicators on the daily chart started displaying negative divergence, implying trend reversal. Coupled with resistance and negative divergence, the stock changed direction recently. On Tuesday, it fell 2.5 per cent breaching its 21-day moving average and key immediate support at around ₹663. Volumes in the daily chart are decreasing, backing the downtrend. The daily relative strength index has entered the neutral region from the bullish zone. Moreover, other indicators have started sloping down in line with the stock price. Those on the weekly chart are correcting from the overbought levels. The short-term outlook is bearish for the stock. It can extend its fall and reach the price target of ₹623 and then ₹610 in the coming trading sessions. Sell the stock with a stop-loss at ₹663.

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

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