Adani Transmission, Adani Total Gas trade down 3%

The shares of Adani Transmission Ltd and Adani Total Gas Ltd slipped back into the red in trade on Friday. The two stocks were trading lower yesterday just a day after their scheduled exit from the MSCI Global Standard Index. On June 1, the MSCI global index deleted Adani Transmission and Adani Total from the global index, the global equity index said.

Shares of Adani Transmission fell 3.08 per cent to 791.30 over its previous close of 816.40. On a year-to-date YTD basis, the stock has lost 68.76 percent. On technical setup, the stock was seen trading below the 5 - day, 20 - 50 - 100 - and 200 - day moving averages. The counter's 14-day relative strength index (RSI) was at 39.98, down from the previous high of 39.98. A value below 30 is considered oversold, while a value above 70 is considered overbought. The company's stock has a P-E ratio of 486.82, a price-to-earning ratio of 486.82. The scrip has a one-year beta of 1.29, indicating high volatility on the counter.

Five of 10 listed Adani stocks are seen to be trading lower today. Adani Enterprises' flagship firm, Adani, fell 2.67 per cent to hit a day low of Rs. 2,425. It decided to terminate the share purchase agreement with MAIF Investments last week. The two firms, Adani Wilmar and Adani Green Energy, fell a per cent each.

Adani shares have experienced a significant market value erosion since January 24 when US-based short seller Hindenburg Research released a report alleging stock manipulation and accounting fraud by the conglomerate. However, Adani Group did not deny all the allegations. The stocks eventually resurfaced after GQG Partners, a boutique investment firm, announced a cumulative investment in four Adani firms.

The shares of Adani Total fell 3.73 percent to a low of 668.25 in the day-to-day trading. It has lost 83.7 percent so far this year, down from a loss of 80.93 percent last year. The stock was last seen trading lower than the 5 - day, 20 - 50 - 100 - 200 - day moving averages. The 14-day RSI was at 35.37. The stock has a P E ratio of 144.04. The scrip's one-year beta is 1.49, indicating high volatility. And support could be seen at Rs. 620, followed by Rs. 600.

Adani total looks bearish and also oversold on daily charts, with next support now at Rs 620. Investors should only buy if a daily close is above the resistance of 710 in the near term for higher targets of 854 - 1,040 in the near term, said Ar Ramachandran from Tips 2 trades.

The stock market is a good option to exit if the stock price does not stay at the current level of 600. If the price shows sustainability at the 600 range, then expected targets are between 800 and 1000 rupees, said VLA Ambala, Research Analyst at Stock Market Today.

In a separate development, Adani is planning to raise about $3.50 billion through an equity shares sale to institutional investors, the news agency PTI reported citing sources. The entire funding, which would go to fund the capital expenditure needs of the group, is likely to be completed within the second quarter July-September of the current fiscal Q 2 FY 24 report, the report further mentioned.

In afternoon deals, Indian equity benchmarks rose to a record high in late afternoon trades, helped by gains in banks, financials, metals, consumer and automobile stocks.