Adani stock surge at risk of reversal, technical indicator shows | Business News,The Indian Express
TD Sequential, a widely followed DeMark technical indicator that forecast drops in Adani Enterprises Ltd. three times since 2009, suggests that last week’s near 6% slump in the shares of the company may extend, with the stock continuing to pare its more than 100% gains for the year.
TD Sequential, a widely followed DeMark technical indicator that forecast drops in Adani Enterprises Ltd. three times since 2009, suggests that last week’s near 6% slump in the shares of the company may extend, with the stock continuing to pare its more than 100% gains for the year. It also hints at losses in the offing for the shares of Adani Total Gas Ltd. and Adani Ports & Special Economic Zone Ltd.
Adani, who started the year as No. 14 on the Bloomberg Billionaires Index, had surged to the second spot before last week’s rout in his company’s stocks reversed some gains in his wealth. Shares of his flagship Adani Enterprises rose to a record last month, and some of his companies, including Adani Total, have climbed more than 1,000% in the last two years.
“Technical indicators suggest that these three Adani group stocks will face significant headwinds,” said Kunal Kansara, co-founder and strategist at Mumbai-based Curl Capital. “Some of these stocks are also dangerously overbought and are ripe for a deeper setback based on price action.”
The TD Sequential study, a market timing indicator that uses a method of counting applied to chart patterns, suggests a reversal of the rally in the three Adani stocks. The last trend reversal signal on Adani Ports — flashed in 2021 and still active with a downside forecast — is the second since its listing in 2007, while that on Adani Total from August is the first since the stock made its public debut in 2018.
The last time TD Sequential suggested a reversal to rally in Adani Ports’ shares was in 2015, and a 55% drop followed. However, those who made trades following a 2007 sell signal by the indicator on Adani Enterprises, the first one since its public market debut in 1999, faced losses.
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