Stocks

This year has been a wild ride for Indian stocks in general and Adani shares in particular. The Hindenburg Research’s report against the Indian billionaire and business tycoon Gautam Adani jolted the whole Indian stock market. In January 2023, the resulting sell-off took Adani Power (NSE: ADANIPOWER) share price  69% below its October 2022 high. Adani Enterprises (NSE: ADANIENT) share price took the hardest hit and plunged 75% from its 52-week high.

Since Hindenburg’s report, Indian equities have rebounded very strongly. The benchmark indices Nifty 50 and BSE Sensex have shown a V-shaped recovery, soaring to new all-time highs. This suggests that investor confidence has significantly improved in the past few months.

Adani Power Records 83% Surge In Q1 Profit

The ongoing surge in the Adani Power stock can be attributed to the recently released Q1 results. The results for the first quarter showed a massive uptick in profit. A boost from a steep drop in its tax bill and a jump in the collection of delayed payments were the primary reasons behind an 83% surge in quarterly profit.

Furthermore, the consolidated revenue increased by 17% to Rs 11,005.54 crore. The company's operational performance was also strong, with generation and availability levels improving.

Adani Power Share Price Forecast

NSE: ADANIPOWER closed at Rs 288 on Friday, its highest daily closure since 9th January. There has been a constant increase in trading volume in the past few weeks, which shows the price is gaining momentum. The following chart also shows that the shares have broken above their 200-day moving average, which is a significant line in the sand for many traders.

If the bulls maintain the momentum, I expect a retest of the Rs 318 level in the coming weeks. The invalidation of this bullish Adani Power share price forecast will be a breakdown below the 200-day moving average. The Rs 318 price target comes from the 0.618 fib retracement level.publive-image

Adani Enterprises Denies Reports Of Wilmar JV Exit

Adani Enterprises reported its Q1 financial results on August 3, 2023. The results showed a 44% YoY increase in net profit to Rs 674 crore in Q1 FY23, despite a 38% YoY decline in revenue to Rs 25,438 crore. The company's EBITDA increased by 47% YoY to Rs 2,896 crore.

Adani Enterprises attributed the decline in revenue to the correction in coal prices. Despite a massive increase in net profit, Adani Enterprises stock has remained sideways this week. The company has recently denounced the reports of exiting $6 billion Adani Wilmar JV.

Adani Enterprises Share Price Forecast

It is pretty evident from the following NSE: ADANIENT chart that the stock has shown a remarkable recovery from its February lows. During this time, it has surged more than 145%, suggesting that the investor faith is back in the Adani companies. The shares seem to be heading for a retest of the 200 MA, which is the red line on the following chart.

The RSI and MFI indicators show a bearish divergence which may result in a rejection from 200 MA. A reclaim of the 200-day moving average will make Adani Enterprises share price forecast very bullish with the first target of Rs 3,500 level, which is a 0.786 fib retracement level.

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