We recommend a buy on the stock of Adani Enterprises from a short-term horizon. It is evident from the charts of the stock that after peaking out in January at Rs 455, it was on an intermediate-term downtrend until August low of Rs 151. Thereafter, the stock changed its direction triggered by positive divergence in daily relative strength index and moving average convergence divergence indicator. Since then, the stock has been on a modest medium-term uptrend.

While trending upwards, the stock emphatically broke through key resistance at Rs 210 in early October this year. This level later provided base for the stock from which it has bounced up. The stock gained more than four per cent with good volume strengthening its uptrend on Thursday. It is hovering well above its 21- and 50-day moving averages. The daily RSI has entered the bullish zone and weekly RSI is moving higher in the neutral region. Both daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest.

We are bullish on the stock from a short-term perspective. We anticipate its rally to prolong and hit our price target of Rs 235 or Rs 240 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 221.

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