Adani Enterprises, part of the Adani Group,was formerly known as Adani Exports.Founded in 1988, it got its present name in 2006. The company has a diversified presence in five business sectors: Power, Oil & Gas, Real Estate, Agro and Metals & Minerals with Shipping, the shipping acting as backbone to its various businesses.
Adani Enterprises
Through its subsidiaries, the company engages in the trading of commodities in India and internationally.Technically, this company stock has been trading on the bourses for a long time now. Attached alongside is the Log chart of the monthly time frame where we see that a rising trendline has been successfully
holding the trend up and arresting any major decline seen in the last many years. The recent sharp spurt from the above mentioned trendline support occurred during first half of 2009 after a heavy fall seen from the all time high of 667 in Jan 08. Having bottomed out on the support, prices since last April 09 has been looking constantly northward with buying happening at all levels and during all subsequent dips.
This has also helped prices form fractal accumulation patterns (shown below) on the intermediate time frame. Also rather interesting to note that despite any fall since its listing, the RSI readings at no point have moved below the crucial 40 region, which is an excellent sign of inherent strength in the counter.
With the longer term picture quite sturdy and promising further rallies, we move on to examine the charts on the lower time frame charts. Attached here is the weekly chart of the counter where we see some excellent accumulation pattern formations. The black curvy line is the 30-period EMA, the breakout from which was a key trigger for the sharp advance seen since April 09. The same line provided excellent support during the correction seen in August 09. The rally from Oct 09 lows helped prices complete the pattern at 448 levels (green line). Before they could stage a breakout early this month, prices had formed another valuation around 436-37 levels (purple line), which prices had been struggling to breakout against.
However with the market taking a severe hit, prices of this counter too took a beating, moving back to take support on prior resistances. Though the breakout fizzled out and prices have moved lower, they still are holding on to supports and continue to provide hope of a turnaround from here. Momentum readings are good on all time frames and indicate that dips are good opportunities to enter into this counter. Buy above 445 with stop below 385 for target 560 / 660. Will review for higher targets once these are achieved.
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