Adani Ports—The Stock in Traders’ Spotlight

  • Stock Market Analysis

About the company:

Adani Ports and Special Economic Zone Ltd (NS: APSE develops, operates, and maintains port infrastructure (port services and related infrastructure development). The company has linked multi-product Special Economic Zone (SEZ) and related infrastructure contiguous to Port at Mundra. The stock is trading at a 20% discount from its 52-week / all-time high level. The 52-week high and 52-week low range is Rs 901 – Rs 312.

Technical observations:

One week time frame: (Fig 1)

On the weekly time frame, Adani Ports stock has made a Bullish Pennant pattern. It broke a vital neckline of Rs 677, touched an all-time high of Rs 901, and has now retraced. The scrip has taken support at Rs 677 level. Since June 14 week, the share has consolidated at this support line. The stock's positive bias is also due to the Relative Strength Index (or RSI) line's support at 50; currently, the same is at 54.
Long-term investors should invest at the current level by keeping a strict stop loss of Rs 623 on a weekly closing basis.
AP1
Observations:

One day time frame: (Fig 2)

On a daily time frame, APSEZL stock has been consolidating in a range of Rs 665 and Rs 730. On June 18, 2021, the scrip broke out and took support at Rs 660 multiple times. It has also tested the resistance of Rs 730 many times. On August 24, the share again took support at Rs 660 level and has bounced back to the current level. We can see that this is on the back of above-average volumes. After touching a low of 40 on June 23, RSI has also bounced back to 56. It also indicates positive momentum.
Medium-term investors should only enter when the stock decisively crosses and stays above Rs 730. Maintain strict stop loss at Rs 660 level on the daily closing level. Our view will negate below that level.
AP2
Conclusion:

We anticipate the stock to maintain positive bias and move northwards. Short-term traders should take a position in the stock with a strict stop loss of Rs 691 on a daily closing basis.

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