Adani Total Gas: 42% Rally in Two Days, Analysts Remain Optimistic

Shares of Adani Total Gas have experienced a significant surge, with the stock climbing an impressive 42% in just two trading days. On Thursday, the stock soared by 18.59% to hit a day high of Rs 823.30, marking a sharp upward movement for the second consecutive session. This rally has caught the attention of investors, as the company continues to perform well despite external challenges.

Market Confidence Amidst Allegations

The Adani Group has faced scrutiny over bribery allegations, with the US authorities recently accusing Gautam Adani and other executives of misconduct. Despite these claims, market confidence in the business fundamentals of the group remains intact. Investors are bullish about the company’s ability to deliver infrastructure projects and manage its financials effectively. According to Deven Choksey, Managing Director of DR Choksey FinServ, the group’s robust EBITDA of over Rs 85,000 crore and a 20% CAGR growth over the past three years reflects its strong financial health.

Technical Analysis: Bullish Outlook for Adani Total Gas

From a technical perspective, the stock of Adani Total Gas appears to be on an upward trajectory. Analysts have highlighted key support and resistance levels. Technical analyst Jigar S Patel suggests that the stock has strong support at Rs 780, with resistance at Rs 850. A decisive move above Rs 850 could trigger further gains, with a target of Rs 900 in the near term. Other experts like AR Ramachandran have indicated that a break above Rs 855 could push the stock to Rs 921.

Adani Group Denies Allegations

In response to the recent allegations from US authorities, Adani Green Energy Ltd (AGEL) has issued a statement clarifying that neither Gautam Adani, Sagar Adani, nor Vneet Jaain have been charged with violating the Foreign Corrupt Practices Act (FCPA). The group has firmly rejected the accusations of bribery and fraudulent practices, calling them baseless.

The ongoing legal proceedings against the group have added volatility to its stock prices, but analysts remain confident about the long-term potential of Adani Group companies, including Adani Total Gas. With its solid financial performance and potential for growth, the stock presents opportunities for savvy investors looking to capitalize on short-term fluctuations.

Conclusion:

 A Strong Buy Signal for Investors

The recent surge in Adani Total Gas’s share price reflects a strong market sentiment, with investors continuing to bet on the company’s potential. With strong fundamentals, bullish technical indicators, and a positive outlook for the company, analysts recommend maintaining a buy position, with a stop loss at Rs 744 and a short-term target of Rs 870.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a financial advisor before making any investment decisions.