Adani Group shares surged on Monday, recovering from last week's steep losses triggered by US criminal charges against President Gautam Adani and others. The recovery came following assurances from CFO Jugeshinder Singh, who said none of the listed group companies were implicated in the bribery and fraud charges.
Flagship company Adani Enterprises Ltd rose 2.6%, reflecting renewed investor confidence. Adani Ports and Special Economic Zone gained 1.6%, while other group companies including Adani Green Energy, Adani Wilmar and Adani Power posted gains ranging between 0.6% and 5%. This recovery aligns with a broader rally in the Indian stock market, where the Nifty 50 index rose 1.5% after hitting a five-month low last week.
The U.S. Securities and Exchange Commission's criminal subpoena and indictment focused on allegations related to a contract by Adani Green Energy, which comprises about 10% of its business. Adani Group has dismissed the charges as “baseless,” reinforcing that the allegations do not extend to its other listed companies.
The rally suggests investors are cautiously optimistic, particularly after CFO Singh clarified the limited scope of the allegations. However, continuing legal developments in the US could pose risks, making Adani stock sensitive to future news.
Adani Enterprises Ltd Stock Chart Analysis
ADANIENT/USD 15-minute chart
This chart shows the 15-minute price movement of Adani Enterprises Ltd. (NSE: ADANIENT). The stock has shown significant volatility over the observed period, reflecting both sharp declines and subsequent recoveries.
- price action: The stock saw a sharp sell-off from recent highs near ₹2,894.80, falling to an intraday low of ₹2,025.00 before stabilizing. Currently, the price is around Rs 2,308.55, suggesting consolidation after the recent swings.
- Support and resistance: Immediate support is evident near ₹2025.00 as the stock found buying interest at this level. Resistance is seen near ₹2,400, where selling pressure could arise if the price tries to recover.
- RSI indicator: The RSI is currently at 59.92, showing improving momentum but not yet entering overbought territory. This indicates room for an upward move if buying pressure continues.
- Signs of recovery: After the sharp drop, the stock has shown a gradual recovery, with higher lows forming on the chart. However, the lack of strong volume indicates caution among traders.
The stock's current consolidation suggests a possible pause before its next move. A break above ₹2,400 could signal further recovery, while a fall below ₹2,200 could lead to additional downward pressure. Traders should keep an eye on sustained momentum and external factors influencing Adani Enterprises' performance.
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