Hello Traders, After a significant correction, you must be considering whether to start accumulating shares of Adani Enterprise. Is Adani Enterprise a good investment at the current price, or should you stay away from it? How much lower can it go from its current levels?
This article will analyze the Adani Enterprise (ADANIENT) over the course of four-time frames: weekly, daily, four hours, and finally one hour. It will help us understand the long-term view and the short-term view.
ADANIENT on the Weekly Time Frame
The Adani Enterprise is clearly testing its main support zone, or you might say its previous accumulation zone, on the weekly time frame.
Meanwhile, for the second time Share Prices of Adani Enterprises are testing its 200 SMA in a short period of time, this highlights that the sellers are losing steam and bulls can make an entry.
Continuous attempts to buy near its 200 SMA suggest that traders are either covering their short positions or building fresh positions near its main support.
If we pay close attention, we can see that just prior to the crash, the share prices of the Adani enterprise formed a double top and a negative divergence in the RSI strength indicator. In the same way, share prices are forming a Double Bottom along with positive divergence in the RSI.
However, the second bottom is formed very close to the first bottom, making it irrelevant. But the main thing is that stock prices are trying to find some support at current levels.
A decline in the stock price below the pivotal low of 1017 could put pressure on it and push it as low as 400.
ADANIENT on the Daily Time Frame
on a daily time frame, Adani Enterprise stock prices are attempting to form a Doube Bottom, and the RSI strength indicator is showing positive divergence.
As the second bottom is quite close to the first bottom, it would not be correct to buy aggressively at current levels. However, positions in small quantities can be added at current levels.
Looking at the current price structure, we cannot say how much time the stock will spend at current levels.
However, after examining the daily price chart of Adani Enterprise, we can say that volumes were extremely low during the most recent crash. This may have been due to traders not having the opportunity to sell or choosing not to do so.
In either case, this implies that traders who are holding or struck in the stock will begin averaging it, which will give the stock a boost.
ADANIENT on a 4 Hour Time Frame
On 4-hour time frame, also the Adani Enterprise stock prices are trading below its key moving averages of 20SMA and 200SMA, indicating that short term bias is negative.
Major trend in the stock is negative and their only a possibility of some short covering.
ADANIENT has immediate resistance at 1500-1550 if it breaks and sustains above 1550 then ADANIENT can initiate a rally leading it to 2400 and above. On the flip side, weakness below its immediate support of 1170 ADANIENT could fall back to its major support of 450-400.
Conclusion:-
The Adani company’s short- to medium-term trend is down due to its trading below its 20SMA and 200SMA key moving averages on the weekly, daily, and four-hour time frames.
However, the stock’s prices have been declining over a long period of time, and a short-term pullback is anticipated.
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Latest Updates
ADANIENT price has been on a strong rally in recent days, hitting its major resistance zone of 2550-2600. This range also coincides with the 50% Fibonacci levels of its current downfall rally. Therefore, a convincing close above these levels will be crucial for the current rally to maintain momentum.
If ADANIENT fails to close above its major resistance zone, it could retest its previous lows. However, the overall trend is still bullish, and a break above resistance would likely lead to further gains.
Here are some key technical levels to watch:
- Support: 2550, 2500, 2450
- Resistance: 2600, 2650, 2700
The RSI is currently in overbought territory, which suggests that the rally may be due for a correction. However, the MACD is still bullish, which suggests that the trend is still intact.
Overall, the outlook for ADANIENT is bullish. A close above 2600 would be a strong signal that the rally is still in play. However, a close below 2550 would signal a reversal and could lead to further losses.
Here are some factors that could impact the price of ADANIENT in the near future:
- Economic data: Economic data releases, such as GDP growth and inflation figures, can have a significant impact on the price of ADANIENT.
- Central bank policy: Decisions by central banks, such as the Federal Reserve and the European Central Bank, can also have a major impact on the price of ADANIENT.
- Geopolitical events: Geopolitical events, such as wars and natural disasters, can also have a significant impact on the price of ADANIENT.
News Updates
Here are the latest news for Adani as of June 2, 2023:
- Adani fully prepays $2.15 billion share-backed financing. The Adani Group has fully repaid a $2.15 billion share-backed financing facility, which was due to mature in 2024. The repayment was made through a combination of cash on hand and proceeds from a recent secondary equity transaction. This is the second time in recent months that the Adani Group has repaid a large debt facility early. In March, the group repaid a $1.5 billion loan ahead of schedule.
- Adani pre-pays ₹7.3 billion of share-backed loans. The Adani Group has also pre-paid ₹7.3 billion ($95 million) of share-backed loans. These loans were due to mature in 2025. The prepayment was made through a combination of cash on hand and proceeds from a recent secondary equity transaction.
- Adani firms complete Rs 15,446 crore secondary equity transaction with GQG Partners. Adani firms have completed a secondary equity transaction worth Rs 15,446 crore ($200 million) with GQG Partners. GQG Partners is a global investment firm that specializes in long-term value investing. The transaction will help the Adani Group to fund its growth plans.
- Adani Group Chairman Gautam Adani’s address to investors after withdrawal of the fully subscribed AEL FPO. Adani Group Chairman Gautam Adani has addressed investors after the withdrawal of the fully subscribed Adani Enterprises Limited (AEL) FPO. The FPO was withdrawn due to regulatory concerns. Adani has assured investors that the group is committed to its growth plans and will continue to raise capital through other means.
Other readings
https://www.adani.com/latest-news
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