Technical Analysis

Adani Enterprises (₹135.6): Sell

Yoganand D BL Research Bureau | Updated on October 08, 2019 Published on October 09, 2019

Adani group   -  Photo via Twitter

Investors with a short-term perspective can sell the stock of Adani Enterprises at current levels.

On Monday, the stock fell by 3 per cent breaching the key immediate support as well as the 200-day moving average at ₹140. In August, the stock took support at ₹125 and began to trend uptrends. It was on a short-term uptrend until it encountered a significant long-term resistance in the band between ₹155 and ₹160 in late September. Subsequently, the stock changed direction, triggered by negative divergence in the daily relative strength index and price rate of change.

The stock has been in a near-term downtrend since late September. It now hovers well below the 200-day moving average and managed to close below the 50-day moving average. Over the past two weeks there has been decrease in daily volume.

The daily RSI is on the brink of entering the bearish zone from the neutral region and the weekly RSI hovers in the neutral region. Also, the daily price rate of change indicator features in the negative terrain implying selling interest. The stock has the potential to extend the downtrend and reach the price targets of ₹130 and ₹127.5 in the coming trading sessions. Traders can sell the stock with a stop-loss at ₹139.

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

Published on October 09, 2019
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