Shree Cement exits Nifty, Adani Enterprises down 1.3%

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Shree Cement exits Nifty, Adani Enterprises down 1.3%

NEW DELHI: Shree Cement exited Nifty 50, making way for Adani Enterprises, the second Adani Group stock, to be part of the elite 50-pack.

On the same exchange, Adani Enterprises' shares were trading 1.3 per cent lower at Rs 3,425 on NSE, while those of Shree Cement were trading nearly 2.17 per cent higher at Rs 21,750 at the same time.

Shrikant Chouhan, a broker at Kotak Securities, said that risk-reward looks favorable for Shree Cement on the technical charts.

After hitting a high of 25,550, Shree Cement moved back to Rs 20,500 and600 levels on a weekly and monthly basis. It found good support between Rs 20,500 and Rs 20,600 levels. The stock will go up to level Rs 24,500 after a pull-back rally. The last stop loss should be placed at Rs 20,500, according to Chouhan.

If Rs 3,400 is out, it can drop to Rs 3,100. The stock has become overstretched on a monthly basis and we would see further weakness at Rs 3,100. On the upside, Rs 3,850 3,900 would be a big hurdle. He said that he would prefer Shree Cement over Adani Enterprises because of the risk-to- reward ratio.

Om Mehra, Technical Associate at Choice Broking said that Shree Cement is trading below its 200 day moving average MA, but has support from 89 DMA. The stock has a good base around the Rs 20,580 level, according to Mehra.

We believe that the recent stock price correction is an opportunity to accumulate. The stock could reach 25,000 -- 26,000 levels by the end of the year, Mehra said.

Mehra said the shares of Adani Enterprises have been rising steadily.

After a significant surge, the stock appears to have seen moderate profit booking. For those who invest for the long term, a correction is just a minor hiccup. The stock has delivered positive returns of up to 65 per cent over the last five festive seasons, from Navratri to Diwali. The stock is tested in the Rs 3,000 zone, which is also a 23.6 percent Fibonacci level, according to Mehra on Adani Enterprises.

Prashanth Tapse of Mehta Equities said that Shree Cement is consolidating in a broader range of Rs 18,000 -- 26,000.

There is a chance of support near Rs 18,120 and crucial resistance near Rs 26,070. For the short term, immediate support for the stock is near Rs 20,230, he said.

Tapse said that Adani Enteprises have moved in the single direction, making higher high-lows, indicating an upside trend. He said that corrective moves near Rs 3,360 -- 3,290 can be used as an accumulation from a medium to long term perspective.

Tapse said the important support for Adani Enterprises lies near Rs 3,300 and resistance at Rs 3,880.