Technical Analysis

Adani Enterprises (₹148.5): Buy

Yoganand D BL Research Bureau | Updated on March 12, 2019 Published on March 13, 2019

The stock of Adani Enterprises has jumped 6.7 per cent accompanied by above average volume, breaking above key resistance at ₹143 on Tuesday. This rally boosts the bullish momentum and provides short-term traders an opportunity to buy the stock at current levels.

After an intermediate-term downtrend from the new high of ₹180 recorded in November 2018, the stock found support at ₹115 in early February this year. Taking support at ₹115, the stock reversed direction and has been in a short-term uptrend. While trending up, the stock conclusively breached its 200-day moving average at ₹133 and started trading well above this average line. Moreover, the stock hovers well above its 21- and 50-DMAs.

Since early February there has been an increase in daily volume. The daily relative strength index features in the bullish momentum and the weekly RSI is charting upwards in the neutral region. Also, the daily price rate of change indicator hovers in the positive terrain implying buying interest.

The short-term uptrend is gaining strength and it has potential to continue in the ensuing trading sessions. Traders can buy the stock at current levels with a stop-loss at ₹145. Short-term targets are ₹154.5 and ₹157.5.

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

Published on March 13, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.