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.)
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