Adani Stocks Giving Once a Lifetime Opportunity to F&O Trader Amid High Volatility

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Last week on Friday 19th May 2023 during the live market, we witnessed the updates from the Supreme Court-appointed panel of experts examining India's regulatory mechanism in an investigation linked to the Hindenburg allegations that had given a clean chit to the Adani Group.

The Committee's task was to determine if a regulatory failure occurred, not to determine whether the price increase in Adani stock was warranted.

SEBI stated in a briefing requested by the committee that despite putting Adani group scrips under various surveillance measures, it had not discovered any proof of "wash trades" (where connected parties trade continuously in stock with one another without intending to transfer ownership of the stock).

The regulator claimed that the stock exchanges had tracked the price movement of Adani equities on four occasions, according to the committee. Two of them occurred before the release of the Hindenburg Report, while two occurred after the report's publication (which occurred after January 25).

The F&O Traders were delighted with this report and today 22nd May 2023 while writing this article stock prices were in green, Adani Enterprises (NS: ADEL ) (up over 12%) and Adani Ports & Special Economic Zone (NS: APSE ) (up nearly 10%) were among the top two gainers on the Nifty 50 , while other stocks like Adani Total Gas (NS: ADAG ), Adani Green Energy (NS: ADNA ), Adani Transmission (NS: ADAI ), and Adani Green Energy gained 5% each frozen at 5% upper limit, and Adani Wilmar (NS: ADAW ) was up by 10%. The market capitalisation of Adani Group increased by almost 50% from its February 27 low of ₹6.8 lakh crore. Presently, the market capitalisation of the Adani Group is at ₹10 lakh crore, down from ₹19.2 lakh crore on January 23.

Q4 results have shown that fundamentally post Hindenburg saga there has been no material impact on company businesses and further clean chit reports would gradually increase confidence in the group stocks. To add further 2023 May option series saw the highest volatility in Adani Enterprise with 2000 CE option expiry on 25 May 2023 seeing a rise of nearly 600% whereas 2100 CE and 2200 CE are witnessing a rise of 1200% and 1400% respectively (at the time of writing this article) therefore Adani stocks giving once a lifetime chance to F&O traders to be millionaires due to high volatility in 2023 May series.

Adani Enterprises had been in the range of 1,800 to 2,000 level for more than a month (26 trading sessions) The stock has breached the upper band, which is a bullish development. The stock has moved above the short-term moving average but sailing below the long-term moving average. Stock can face resistance near the 2302 level but no prominent reversal sign observed yet. Moving above the 2302 level can be considered as further bullish validation and it can rise to the 2500+ level soon.

On the other side, Adani Ports & Special Economic Zone has breached major resistance of the 733 level, which is a positive development. Stock is above the long to short-term moving average which indicates relatively better relative strength as compared to other Adani group stocks. The stock has immediate support at 715 and resistance at the 788 level. The underlying tone is positive

Adani Total Gas has shown very initial signs of support from 4 months low. On the daily chart, the stock has formed a positive candle but the structure remains weak as the stock is under a lower high and lower low sequence and trading below the short to long-term moving average.

We also found a few media reports claiming that the Adani Group is looking into the potential of selling off real estate holdings that have been considered to be non-core to its business. The group has already discovered a few of these resources and is currently compiling a list of further ones.

Stay tuned for more updates as the dark clouds on the groups are still prominent and believe going forward we could see more updates from other regulatory bodies on this group which could keep this counters volatility on the higher end, so a cautionary approach is not only advisable but recommended with strict stop losses.

Disclaimer: The above article is for self-educational purposes. The analysis was conducted by the following students: G10, VJ, and Anantji for learning purposes.

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  • Native Vivek @Native Vivek
    adani green energy not allow to f&o option.....
    Like 0
  • JET AGE @JET AGE
    Profit booking above 2688 level will help protect the portfolio
    Like 1
    • JET AGE @JET AGE
      As witnessed below 2688 from 23rd may 2023 ... 'Dark could' mentioned in the article
      Like 0
    • JET AGE @JET AGE
      As witnessed below 2688 from 23rd may 2023 ... Dark could mentioned in the article
      Like 0
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  • JET AGE @JET AGE
    Above 2302 even 2500+ possible ...today 23td may @ 10% circuit in opening 15 mins @ 2558.70
    Like 1
  • Azeem Khan @Azeem Khan
    ardani
    Like 0
  • Mohit Phogat @Mohit Phogat
    adani kl down jayega
    Like 0
    • Diya Chatterjee @Diya Chatterjee
      adani ki down nahi jayga ushka dushmano ka down jayga , kuchbhi bolo abb profit book hoga baat karna bhi nahi aata ???
      Like 1
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  • Kapil Konde @Kapil Konde
    What is next resistance for adani ent
    Like 0
    • Abhineet Rai @Abhineet Rai
      upar jate hue market se resistance nahi puchte niche ate hue market se support, upar jate hue bas support dhundo niche ate hue se resistance dekho jindgi kese badalti h
      Like 2
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  • Kapil Konde @Kapil Konde
    What is next resistance for adani ent
    Like 0
  • Jeetesh Singh @Jeetesh Singh
    Still SEBI has to submit their reports
    Like 0
    • JET AGE @JET AGE
      Mentioned in the article.... Stay tuned for more updates as the dark clouds on the groups are still prominent and believe going forward we could see more updates from other regulatory bodies
      Like 1
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  • Tushanth T Nair @Tushanth T Nair
    will it continue or fell down tomorrow ??
    Like 0
    • Ashish Singh @Ashish Singh
      Things are in favour for Adani. So tomorrow there's a possibility (sure) upside rally for 1-3%.
      Like 1
    • JET AGE @JET AGE
      May f&,o series expiry on 25th... So if the price is above 2302 levels positive (upside) will continue
      Like 1
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