Stock rallies of Gautam Adani’s companies, which expanded their fortunes to outperform all other billionaires globally, are set for a reversal, according to a technical indicator that predicted the last recession by more than a decade.
The TD Sequential, a widely followed DMark technical indicator that forecasts a three-time decline in Adani Enterprises Ltd since 2009, suggests the company’s shares may continue to fall nearly 6% last week. The stock continues to decline by more than 100%. Profit for the year. This also hints at losses for the shares of Adani Total Gas Ltd and Adani Ports and Special Economic Zone Ltd.
Adani, who started the year as number 14 on the Bloomberg Billionaires Index, jumped to second place last week before his company’s shares fell and some gains in his wealth. Shares of his flagship Adani Enterprises rose to a record last month, and some of his companies, including Adani Total, have climbed more than 1,000% in the past two years.
Kunal Kansara, Co-Founder and Strategist, Mumbai-based Curl Capital said, “Technical indicators suggest that these three Adani Group stocks will face significant headwinds. Some of these stocks are dangerously overbought and a deep setback. Ready for price action.”
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The TD Sequential Study, a market timing indicator that uses a counting method applied to chart patterns, suggests a rally reversal in three Adani stocks. The last trend reversal signal on Adani Ports – flashed in 2021 and is still active with a negative forecast – is the second since its listing in 2007, while the stock on Adani Total has posted the first since its public debut in 2018. Is. ,
The last time TD Sequential suggested a reversal of the rally in Adani Ports shares was in 2015, and was followed by a 55% fall. However, those who traded after the 2007 sell signal by the indicator on Adani Enterprises have suffered losses since the public market debut in 1999.
Some investors were stressing the debt-fuelled expansion of the group’s port-to-power conglomerate and the lack of broad coverage by research analysts. The group’s rapid expansion into sectors such as renewable energy and media has left it with leverage that Fitch Group unit CreditSites described as high and “a matter of concern”.
The group has allayed concerns, saying its credit metrics have improved over the years, and received equity infusions from global investors. Adani Group Emails seeking comment on technical indicators suggesting a reversal in share price growth did not respond.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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