Adani Group Stocks: Should You Catch These Falling Knives?

• Locha, lafda aur jalebi fafda, isko Gujarati ki life se koi nikaal nahi sakta!
  - The TV series Scam 1992

Most of you might have watched the blockbuster TV series based on stock market veteran, Harshad Mehta - the Gujarati trader.

Three decades later and another Gujarati is in the news. Some headlines now read the Rise and Fall of Gautam Adani!

When Adani group stocks were rising, investors enjoyed the taste of jalebi and fafda, the Gujarati delicacy.

But the tables have turned, and they are enjoying the locha and lafda, the problems.

Adani group stocks are falling like pack of cards as some stocks have already slumped over 50% since the release of Hindenburg report.

With the current fall in stock prices, Gautam Adani has now slipped below the top 20 in the Forbes Billionaires list.

Should you buy these falling knives?

In the piece I wrote yesterday, I highlighted the Adani Marketcap Weighted Index and shared the technical patterns on the chart. Check it out here in case you haven't already: Adani Group Stocks: Beginning of the End?

In this piece, I'm adding the stocks and their charts which are trading at their long-term support area from the Adani Group.

 

1. On the left, Adani Ports has approached the resistance-turned-support level of Rs 430; below which the next support is placed at Rs 365.
   
   The Fibonacci Fan indicates the 78.6% time cycle theory and price support may act as a demand zone. An oversold RSI indicates a pause to the bearish momentum.
   
   
2. ACC Ltd (right top) - The cement company corrected over 35% from its peak and is trading at five years support zone.
   
   The multiple support at Rs 1,700 and Rs 1,450 will maintain the long-term bullish trend on the charts.
   
   
3. Ambuja Cements (right bottom) - Due to the 63% stake of Adani Group in the cement conglomerate, it felt the heat too.
   
   The stock is trading with the support of rising channel. The price overshadowed the support zone but the weekly close above 375 will save from further fall. The next support is placed at Rs 260.

Please note these are not recommendations. Our aim is to only share what the popular technical tools are indicating about the future course of action.

Before taking any decision, be sure to do your own study. The volatility may prolong in Adani group stocks. Always trade with a stop loss.

At present, most Adani stocks are trading deep in the red with Adani Enterprises share price crashing 35% before recovering to trade with 20% cut.

Meanwhile, Adani Green Energy and Adani Transmission are down 10%.

I'll share more on his trend on my Telegram group. If you're interested in being part of my charting journey as I share how to create wealth from profitable trade setups, join my telegram channel - Fast Profits Daily.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...