Adani Total Gas has been experiencing a significant downturn, marking a 14.49% decline in just two trading sessions, with the stock hitting a lower circuit at Rs.1,001.95. Despite this sudden fall, the stock had surged remarkably, rising approximately 85% in the past month. The ascent has been met with recent challenges.
Both the BSE and NSE have initiated the placement of Adani Total Gas securities under the short-term Additional Surveillance Measure (ASM) framework. This move aims to caution investors about the heightened volatility in the share prices of the company. Technical analysis paints a bearish picture, indicating a weakened stance for the stock. Analysts have highlighted key support at Rs.975, with resistance anticipated around the Rs.1,150- Rs.1,185 range.
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, outlined a trading range projection between Rs.900 and Rs.1,150 for the upcoming months, citing support at Rs.975 and potential resistance at Rs.1,100. AR Ramachandran from Tips2trades echoed this sentiment, identifying strong resistance at Rs.1,185 and a possibility of the stock hitting Rs.887 in the near term if it closes below Rs.1,035 on a daily basis. Ravi Singh, the founder of DRS Fin vest, also expressed a bearish sentiment, foreseeing a near-term decline to Rs.900 based on chart analysis.
In terms of technical indicators, the stock currently resides below the 5-day simple moving average (SMA) but remains above the 10-, 20-, 30-, 50-, 100-, 150-, and 200-day SMAs. The 14-day relative strength index (RSI) stands at 68.94. Typically, an RSI value below 30 denotes oversold conditions, while above 70 indicates overbought status. Adani Total Gas holds a price-to-equity (P/E) ratio of 215.51 and a price-to-book (P/B) value of 37.96.
Adani Total Gas is a collaboration between Total Energies from France and the Adani Group. Notably, all stocks affiliated with the Adani Group, including Adani Total, witnessed substantial gains after reports surfaced, discrediting allegations of corporate fraud by short-seller Hindenburg Research against Gautam Adani, an Indian billionaire, as deemed “irrelevant” by the US government.
Despite recent challenges and technical indicators suggesting a weakened stance, the future trajectory of Adani Total Gas remains uncertain, with key support and resistance levels defining its potential trading range in the coming months.