New Delhi: Shares of Adani Green Energy Ltd (AGEL) and Adani Energy Solutions Ltd (formerly Adani Transmission Ltd) have jumped big time, with the former going up by as much as 39% in just three trading days. On Friday, the stock of AGEL rose by 14.64% to ₹1,247.55, which means a total rise of 38.71% in this short time. Adani Energy’s stock went up by 13.54% to ₹825.85, which means a 37.38% gain in just three days.
This impressive growth in Adani stocks comes after investors regained confidence, thanks to the Adani Group addressing bribery allegations from the US. The group has firmly stated that no bribery charges have been filed against Gautam Adani or other top executives. They also reassured investors about their financial stability, saying their companies have enough liquidity to cover all debt obligations for at least the next year.
Deven Choksey, the Managing Director of DR Choksey FinServ pointed out that the core business of Adani Group, though being attacked by allegations from the US, stands firm in terms of its confidence. He highlighted the fact that the group’s EBITDA stands above ₹85,000 crores and has been sustaining at a steady growth of 20% for three years now with a debt of around ₹2,40,000 crores.
However, both AGEL and Adani Energy stocks are now under the Additional Surveillance Measure (ASM) by the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), which means investors should be aware of potential price swings.
From a technical point of view, analysts are watching support levels around ₹1,100 for AGEL to ₹1,000. If this breaks resistance levels of ₹1,300 to ₹1,400, then probably there will be more buying. For Adani Energy, support is seen at ₹700 to ₹724 and resistance at ₹880 to ₹900.
Though the recent surge in Adani stocks shows a recovery in investor sentiment, which has been fueled by clarifications on the bribery issue and the solid financial position of the group, investors should remain watchful because of ongoing market monitoring and the external allegations. It would be advisable to keep an eye on the support and resistance levels as the stock market for Adani remains quite volatile.
