Adani Group stocks have been in focus lately after SEBI officially cleared all allegations made by Hindenburg Research in January 2023. The development boosted investor confidence and triggered a strong relief rally, outperforming the broader market.
On September 22, markets regulator SEBI gave a clean chit to the Adani Group, confirming that its entities – Adani Ports & Special Economic Zone Limited and Adani Power Ltd. – had not breached any regulations, contrary to the claims made by U.S.-based short-seller Hindenburg Research.
“The transactions cannot be classified as manipulative or fraudulent transactions or unfair trade practice as there was no allegation of siphoning off of money or diversion of fund; all the money has come back with interest before the start of the investigation; and the impugned transactions have not been held as related party transactions,” SEBI said in the final order.
Responding to the outcome of the probe, Adani Group chairman Gautam Adani said, “After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report.”
In January 2023, Hindenburg Research released a short-seller report alleging that the Adani Group was involved in accounting fraud, stock manipulation, and money laundering.
Which Adani stock should you buy after this row?
Shiju Kuthupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, recommended investors to keep a track on Adani Green stock.
“Among the ADANI group, currently ADANI GREEN cmp 1047 looks well placed technically, with a breakout witnessed recently accompanied with huge volume participation above the descending channel pattern on the daily chart at 1020 level after it gave a significant pullback above the confluence of the 200 period SMA, 100 period SMA and 50 EMA level at around 980 zone. Currently with some profit booking witnessed it has slipped down having the support positioned near 1010 level and can expect for some consolidation and thereafter, a pullback to improve the bias. The near term target would be 1220 and further, with strength sustaining, can achieve 1360 level,” Kuthupalakkal said.
On the other hand, Hardik Matalia, Derivative Analyst at Choice Broking, also believes Adani Green shares to be potential stock for accumulation. “The stock is currently trading around ₹1,047 and had earlier witnessed a sharp decline of nearly 65% from its swing high. Following this correction, the stock entered a prolonged consolidation phase within a broad trading range of 250-300 points. Recently, however, ADANIGREEN has shown renewed strength with a strong bounce from its support zones, reflecting early signs of recovery,” Matalia said.
Matalia further suggested investors to adopt ‘buy on dips’ approach. “Going ahead, a sustainable move above the ₹1,200 mark would confirm a breakout and signal a potential trend reversal, opening room for further upside. Until then, traders can adopt a “buy on dips” approach while keeping a strict stop-loss below the ₹900 mark, which remains a crucial support. Fresh buying should ideally be considered only once the stock closes convincingly above ₹1,200. Long-term investors can gradually accumulate on declines, provided the stock sustains above its key support levels,” Matalia added.