Know why Adani Ports is buzzing on the bourses!
Fast forward to the current day, the stock of Adani Group is seen buzzing on the bourses!
It seems that the month of February belongs to Adani! Just a week ago, it was Gautam Adani, who was in the news for surpassing Mukesh Ambani as Asia’s richest person. Fast forward to the current day, the stock of Adani Group is seen buzzing on the bourses!
Adani Power jumped nearly 13 per cent while Adani Green and Adani Transmission have soared nearly 4 per cent each. However, in this article, we are going to talk about Adani Ports & Special Economic Zone (Adani Ports) as it has climbed nearly 3.5 per cent.
Technically, the stock had registered a swing high of Rs 795 in the first half of January. Thereafter, the stock witnessed a correction of nearly 13.33 per cent and made a low of Rs 689 on January 24, 2022. After registering the low of Rs 689, the stock witnessed a pullback rally of nearly 8.4 per cent and made a swing high of Rs 746.85. However, once again, the stock witnessed a move on the downside but this downmove leg was nearly 7.61 per cent. Moreover, the downmove leg halted near the previous swing low level (Rs 690). This resulted in the formation of the double bottom as the first low stands at Rs 689 and the second low stands at Rs 690. Besides, the neckline of this double bottom was placed at Rs 746.85.
On Wednesday, the stock witnessed a strong upmove of nearly 3.5 per cent and with this, it has breached the neckline of the double bottom pattern, which stood at Rs 746.85. Moreover, we are just halfway through the trading session and the volume for the day is the highest since January 21, 2022.
Meanwhile, the stock's relative strength index (RSI) has reached its highest value in the last 14 days, which is bullish. Also, it has managed to close above its prior swing high. The MACD line has crossed above the signal line, which resulted in the histogram turning positive.
The above technical evidence indicates that the stock is likely to remain buoyant in the near term