Adani Enterprises, ACC: Time to sell Adani group stocks after a sharp run?

Analyst recommends investors should wait for some constructive growth direction before venturing into the Group stocks.

Shares of Adani Group were trading on a mixed note on Thursday, with stocks from the futures & options (F&O) space trending lower, while others holding steady gains. 

In the last few trading sessions, Adani Group shares witnessed a sharp recovery after promoters repaid share-backed finance ahead of schedule in their bid to regain investors’ confidence. READ MORE

Share price of the group's flagship firm - Adani Enterprises has zoomed over 93 per cent from its low of Rs 1104 on February 28 to a high of Rs 2,135 on March 06 - in a matter of mere five trading sessions. That apart, select stocks such as Adani Power, Adani Wilmar, Adani Transmission, Adani Green and NDTV were locked at the 5 per cent upper limit on Thursday, for the seventh straight trading session as of 10:30 AM.

Meanwhile, the Group shares within the F&O space - Adani Enterprises, Adani Ports, ACC and Ambuja Cements were trading lower in the range of 2 - 6 per cent 

Commenting on the same, Vinit Bolinjkar, Head of Research at Ventura Securities said these stocks are witnessing some profit-taking owing to the sharp rally in recent following the recent rally.

The F&O data also reveals that some long unwinding seen in the last three trading sessions, especially in Adani Enterprises and Adani Ports.

"The promoter group has been able to salvage their financial position. Going ahead, investors will now have to look for some constructive growth direction before venturing into these stocks. Within the space, Adani Ports remains a high conviction Buy," Vinit added.

Here's how these stocks may trend in the near term:

Adani Enterprises

Bias: Negative

Target: Rs 1,350

Support: Rs 1,670

Resistance: Rs 2,140

In the previous two trading sessions, Adani Enterprises was seen testing resistance around the higher-end of the Bollinger Bands on the daily chart at Rs 2,140-odd level. In case, of a corrective move the stock can slip towards the 20-DMA (Daily Moving Average) placed at Rs 1,670; below which a fall towards the trend line support at Rs 1,350 seems likely.

The options data for the March series shows significant open interest (OI) at Rs 2,000 Call followed by 

Rs 2,500, Rs 2,200 and Rs 2,100. On the other hand, the significant OI in Puts is also seen at Rs 2,000 followed by Rs 1,600 and Rs 1,800.

The OI and premium data indicates a likely trading range of Rs 1,700 to Rs 2,200 for Adani Enterprises in the near term.

Adani Ports

Bias: Mildly Positive

Target: Rs 775

Support: Rs 680; Rs 670

Adani Ports has rallied 83 per cent from its early February low of Rs 395. The stock has now only conquered the 20-DMA, but is also seen trading above the 50-DMA in the last four trading sessions. 

Despite today's decline, the short-term bias for the stock is likely to remain mildly positive, with near support seen at Rs 673 (50-DMA), followed by Rs 600 (20-DMA). On the upside, the stock can rally towards the longer-term moving averaged placed around Rs 775-level.

The F&O data seems to be in sync with the technical charts, suggesting likely significant support around the Rs 680-level; owing high build-up of OI in 700 and 650 Puts. On the other hand, the upside for the stock seems capped around Rs 810, for the highest OI is at Rs 800 Call followed by Rs 700 and Rs 750.

ACC

Bias: Mildly Negative

Target: Rs 1,700

Support: Rs 1,820

Resistance: Rs 1,915

ACC has been facing resistance around the trend line on the daily chart at Rs 1,915 for the last four trading sessions. On the downside, the stock has near support around Rs 1,820 - i.e. the 20-DMA. In case, that fails to hold the stock can drift back to Rs 1,700 level. 

On the upside, the stock needs to break and sustain above Rs 1,915 for a rally towards Rs 2,050.

The options data indicates a likely trading range of Rs 1,690 - Rs 2,020 for the stock.

Ambuja Cements

Bias: Mildly Negative

Target: Rs 320

Support: Rs 355

Resistance: Rs 392

Similar to that of ACC, Ambuja Cements too is seen countering resistance around its trend line at Rs 392. The stock attempted to conquer it on more than one occasion but so far has failed.

The near support for the stock lies at Rs 255 (20-DMA), below which the stock can dip to Rs 320. On the positive front, in case the stock conquers the Rs 392 hurdle, it can rally to Rs 425 and even higher to Rs 450.

The F&O data suggests presence of stiff resistance around Rs 410. Highest OI in Calls is visible at Rs 400 and Rs 450. Whereas, highest OI in Puts is at Rs 380 and Rs 350.