Adani's Energy Stocks In Profit-Booking Mode For 4 Straight Days, Drops 15-16%; When Will Bearish Trend End?

Two energy stocks backed by Adani Group have logged heavy profit-booking for four days straight. Wednesday was the continuation of this bearish trend. These two stocks are Adani Green Energy and Adani Energy Solutions. Both the stocks have nosedived in the range of 15% to 16% since December 8th.

This comes after both the stocks have recorded a month-long sharp rally. It is being said that before re-entering in long buys, both Adani Green and Adani Energy Solutions will undergo correction.

Adani Energy Solutions:

On Wednesday, Adani Energy's share price tumbled by as much as 7.5% with an intraday low of Rs 1,007.50 apiece on BSE.

The stock is in red from December 8th to date, and recorded a decline of at least 15.9% during these days.

Adani Energy's monthly gain is over 35% on BSE. The stock price was below Rs 760 on November 13th.

However, year-to-date, Adani Energy stock has dropped by nearly 60%.

Jigar S. Patel, Technical Analyst at Anand Rathi said, "After a massive bounce back from the 50% retracement of its previous historical up-move, it looks like ADANIENSOL is in some profit-booking mode. At the current juncture, we may see a correction until the 975 zone, which would be an ideal price for re-entry for longs."

The stock's 52-week high is at Rs 2,798.60 apiece, which was before Hindenburg's report that led to extreme volatility in all Adani stocks.

Adani Green Energy:

Adani Green erased its Rs 1,400 price level and touched the day's low of Rs 1,375. The stock has dived by over 6% during the day.

Its monthly performance has been robust just like its sibling stocks. Adani Green surged by nearly 52% from November 13th when its price level was near Rs 940.

Year-to-date, Adani Green shares have slipped by at least 24.5%. The stock had touched a 52-week high of Rs 2,185.30 apiece before Hindenburg's report.

For Adani Green, Patel said, "After a massive bounce back from the 0.382% retracement of its previous historical up-move, it looks like Adani Green is in some profit-booking mode. At the current juncture, we may see a correction until the 1250 zone, which would be an ideal price for re-entry for longs."

Among the latest development in the two stocks, would be the Group's plan to invest up to $100 billion in Green Energy Transition over 10 years. The group, which is at the forefront of India's green energy transition, has set a target to become net zero by 2050 or earlier for five of its portfolio companies - Adani Green Energy, Adani Energy Solutions, Adani Ports & SEZ, ACC and Ambuja Cements.