Adani Enterprises: Supreme Court Verdict on 3rd Jan 2024


The Supreme court has rejected any grounds for transferring the investigation to SIT in this case and said such a move can be considered only when there has been a deliberate violation of rules. According to the court, the government and SEBI have been urged to take into account the recommendations of the committee to protect the interests of Indian investors.

Ahead of the decision, shares of Adani Enterprises rose a significant 9.14% to hit Rs 3,199.45 on Wednesday, taking its total market capitalization to around Rs 3.65 lakh crore. However, some profit booking took place after the Supreme Court decision.

Shares of Adani Enterprises have surged 215% from their 52-week low of Rs 1,017 on February 3, 2023, triggered by the Hindenburg report alleging financial misconduct at the Adani-led group. Despite these allegations, Vinit Bolinjkar, head of research at Ventura Securities, dismisses them and advises investors to hold Adani shares for the long term, suggesting accumulation during the correction.

Currently, shares of Adani Enterprises are still 18% below their 52-week high of Rs 3,879 and nearly 20% below their all-time high of about a year ago. Technical analysts predict that after the Supreme Court’s decision, the prices of Adani Enterprises will increase further.

According to Avdhut Bagkar, derivatives and technical analyst at Stockbox, Adani Enterprise shares have moved out of the consolidation phase between Rs 3,000 and Rs 2,700 with ample volume. The positive crossover of the 50-Simple Moving Average (SMA) and 100-SMA indicates a bullish trend. While the Relative Strength Index (RSI) shows overbought conditions, the underlying momentum remains strong. Bagkar estimates the stock to reach Rs 3,400 with support at Rs 2,900 and Rs 2,800 levels. Stability above Rs 3,100 is expected to provide further momentum to the stock.


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