Parul
It was a regular day and the market was running at its pace until a report came out and everything got changed for a big conglomerate in India, since then.
Hindenburg Research published a report titled, “Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History,” on January 24, 2023. It accused the Adani Group of accounting fraud and stock manipulation over decades that had led to a nearly US$ 51 billion sell-off in shares of the port-to-energy Indian conglomerate.
Not only affected one of India’s biggest business groups, Adani Group but, also affected the Indian stock market. As the Chief Analyst Technical of one of India’s brokerage firms, Angel One Ltd, talks about how it will affect the market.
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“In this process, we not only thrashed 17750 but also went on to hasten towards the 17500 mark. Eventually, with some modest recovery in the end, the Nifty concluded the dreadful week at 17600, shedding over a couple of per cent on a week-on-week basis,” he said.
He further added, “this week, the finance minister is going to present the Union budget, and mostly, the market prepares itself for this mega event. This time, the fiasco in the last two days has dampened the overall sentiments and certainly disrupted prices across the board. From an optimist’s point of view, it’s good that the market is approaching this event on a lighter note and that any favourable outcome, would lift the markets higher.
On the other hand, a slight disappointment would lead to further aberration in the market. Let’s see how things pan out going ahead.
Looking at the daily chart, we can see prices gyrating in a ‘Falling Wedge’ pattern and have managed to retrace back to the lower end at the close. Considering the ‘Positive Divergence’ in the ‘RSI-Smoothened’ oscillator, we may expect some recovery from lower levels.
As far as levels are concerned, 17500 is to be treated as immediate support and a slide below this would extend the correction towards the ‘200-day SMA’ level of 17300 – 17200. If this happens then investors/traders are advised to start nibbling into quality propositions.
On the flip side, 17700 – 17800 are to be seen as strong hurdles. If the market has to regain strength as well as confidence, Nifty needs to surpass 18000 on a closing basis. Traders are advised to keep a note of all the above scenarios and should ideally remain light ahead of the event.”
On the other hand, the prices of Adani’s stock portfolio have not stopped bleeding since the report got published. Here is the percentage by which stocks have gone down.
- Adani Enterprises have gone by 15 per cent,
- Adani Wilmar by 11 per cent,
- Adani Transmission by 41 per cent,
- Adani Port & Special Economic Zone by 20 per cent,
- Adani Power by 14 per cent,
- Adani Green Energy by 33 per cent,
- Adani Total Gas by 40 per cent
However, according to the latest reports, stock prices of Adani Enterprises and Adani Ports have recovered a bit today.
