The Adani Group Solar System (Update 3)

November 16, 2021

The Adani Group has been quite the wealth generator over time. But, in brief periods, they also tend to hit lower circuits. SO definitely a lively bunch, that's for sure!

It's been a while since we updated the trends in this space, so this is just that. An update in the levels that are to be followed.

So let's take a look, shall we?

First up, we like to see where the group as a whole is and what the trend is like there. Here's where the ASC custom Adani Group Index is as of today.

We saw the stocks making their highs in June this year, following which the group stocks went into a corrective mode (both time and price). What we can also see here is that the index hasn't crossed the high made in June and is still trading beneath it. We'd like to see this breakout here to be heavily bullish on this group again. Until then, it's a selective game.

Click on the image to zoom in.

First up let's take a look at Adani Enterprises. The price has moved sideways for quite some time and has made three failed attempts of moving above the level of 1,720.

This time around the indicator is too is placed higher than it was in the last two attempts. But we are bullish on Adani Enterprises only and only if the price sustains above the level of 1,720 with a target near 2,710.

Next, we're looking at Adani Total Gas. The price is attempting to move past its all-time high. But what we'd like to see to be bullish is price sustaining above the level of 1,675.

Our bullish thesis is valid only above 1,675 with a target near 2,165.

Adani Transmission seems to be playing out a similar story. The price is trading close to its earlier high, which was in September this year. A move past the level of 2,030 would make for a bullish case. The target to track in that case would be 2,575.

Adani Green looks very similar to Adani Enterprise where the price has been moving sideways and has struggled to move past 1,330. We are bullish only above the risk management level of 1,330, with a target near 1,575.

Adani Ports has been facing stiff resistance at the level of 795. There seems to be plenty of overhead supply in this region that is yet to be absorbed. In this scenario, it's best to wait for the price to move past two levels. The first one is at 795 and the second one at 895.

Once the price sustains above the level of 895, a bullish stance can be maintained with a target close to 1,160. Until then, it's a range-bound trade.

Adani Power is still trying to find its base post the dramatic rally and subsequent sell-off. Notice how the price moved back towards its base breakout after making an all-time high.

A bullish case for this stock can be made only above the level of 155. The target would then be close to 238. For those looking for levels from the current position, 105 would act as the risk management level.