Sumeet Bagadia, Executive Director of Choice Broking recommends Buying into Adani Ports. He said Adani Ports should be bought in cash market in the range of Rs 730 – Rs 736 with stop loss of Rs 682 and target of Rs 785 – Rs 820. This stock is showing consolidating on the technical charts near the upper band of the symmetrical triangle pattern, suggesting a northward journey in the counter.
Moreover, the stock has been trading above its 21 and 50-Day Moving Average which suggests that the stock has a great potential to move further up. Momentum indicator RSI (Relative Strength Index) and MACD (Moving average convergence divergence) both have shown positive crossover on the daily chart which adds more bullishness to the price. Based on the above technical structure, Bagadia is expecting an upside movement in the Adani Ports in a few trading sessions.
HSBC sees Adani Ports as a long-term play on India’s trade and infrastructure growth. Improving free cash flows and unwinding of promoters’ share pledges should act as positive catalysts. A prolonged COVID-19 outbreak and a rise in inter-group loans would be key downside risks for Adani Ports.
Nirali Shah, Head Equity Research, Samco Securities said that Markets ended the fiscal on a positive note after a short volatile week, akin to the year gone by. The year was clouded by extreme pessimism to extreme optimism especially after a swift rally from the lows of Mar’20 to an all-time high of 15431 in less than a year.
This celebration across the globe was possible only because of a host of moving factors. From trillions of dollars as stimulus by governments to trimming of interest rates by central bankers, both these variables synergistically aided ground level demand revival and led to gradual economic recovery. Timely initiatives from the Indian government through various PLI schemes for different sectors instilled confidence in the economy, Shah said.
Not to forget, FPIs, who from May’20 have been ardent believers in India’s growth story and continued their inflows into our markets. Such combined efforts managed to register a sharp recovery in global as well as domestic markets, he further said.
Nirali said that the Nifty 50 index closed positive for the week, however, the market is lacking decisiveness in its direction as Nifty after bouncing from its channel support is still contained within Tuesday’s trading range and this week’s candle is also within the previous week’s range. Market is actually witnessing a volatility squeeze while the trend in other emerging indices hints at a consolidation breakout on the upside.