Todays Pick

Adani Enterprises (₹107.4)

Yoganand D BL Research Bureau | Updated on January 09, 2018

Investors with a short-term perspective can consider selling the stock of Adani Enterprises at current levels. The stock encountered a key resistance at ₹144 in early August and changed direction triggered by negative divergence in daily moving average convergence divergence indicator. In the second week of August, the stock nosedived 17 per cent breaching decisively below a key support at ₹125. After a minor pause, the stock appears to have resumed its short-term downtrend that has been in place since early August.

On Monday, the stock declined 4.3 per cent, breaching its next support at ₹110. The stock trades well below its 21 and 50-day moving averages. The daily indicators are featuring in the bearish zone. The weekly relative strength index is on the brink of entering the bearish zone from the neutral region. Overall, the short-term outlook is bearish for Adani Enterprises. The stock can continue to decline and reach the price targets of ₹103 and ₹100 in the short term. Traders with a short-term view can sell the stock with a tight stop-loss at ₹110 levels.

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

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Published on August 21, 2017
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