Adani Group Shares Jump On Reversal Risk Now, Indicators Show | Whuff News


Gautam Adani’s stock rally is set for a reversal, according to technical indicators

The rally in shares of Gautam Adani’s company, which has grown his wealth at a rate that outstrips all other billionaires worldwide, is set for a reversal, according to technical indicators that have predicted a previous decline of more than a decade.

TD Sequential, DeMark’s widely followed technical indicator predicts a decline in Adani Enterprises Ltd. three times since 2009, suggesting that last week’s near 6% decline in the company’s stock may continue, with the stock continuing to pare more than 100% of its gains for the year. It also implies losses in the near future for Adani Total Gas Ltd shares. and Adani Ports & Special Economic Zone Ltd.

Adani, who started the year as No. 14 on the Bloomberg Billionaires Index, had jumped to second place before last week’s rout in his company’s stock reversed some of the gains in his wealth. Shares of its flagship company Adani Enterprises rose to a record last month, and several of its companies, including Adani Total, have risen more than 1,000% in the past two years.

“Technical indicators suggest that these three Adani group stocks will face significant trouble,” said Kunal Kansara, co-founder and strategist at Mumbai-based Curl Capital. “Some of these stocks are also dangerously overbought and ripe for deeper pullbacks based on price action.”

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The last time TD Sequential suggested a reversal for a rally in Adani Ports shares was in 2015, and a 55% fall followed

TD Sequential Research, a market timing indicator that uses a calculation method applied to chart patterns, suggests a rally reversal in three Adani stocks. Adani Port’s last reversal signal — flashing in 2021 and still active with bearish forecasts — was the second since its listing in 2007, while Adani Total’s from August was the first since the stock made its public debut in 2018.

The last time TD Sequential suggested a reversal for a rally in Adani Ports shares was in 2015, and a 55% follow-up followed. However, those who traded following a 2007 sell signal by the indicator on Adani Enterprises, the first since its public market debut in 1999, faced losses.

Some investors have dismissed the debt-driven development of the group’s port-to-power conglomerate and a lack of broader coverage by research analysts. The conglomerate’s rapid expansion into areas such as renewable energy and media has given it leverage that Fitch Group unit CreditSights described as high and “a matter of concern.”

The group has played down those concerns, saying its credit metrics have improved in recent years, and has received equity infusions from global investors. Adani Group did not respond to an email seeking comment on technical indicators suggesting a reversal in share price gains.

(Except for headlines, this story has not been edited by NDTV staff and is published from a syndicated feed.)



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