Although not highly bearish (yet), the outlook on the medium term isn’t too good. The strong recovery since May and the subsequent consolidation phase are part of a much larger counter trend phase on the weekly chart. This counter trend phase is most likely a B-Wave in a larger bearish trend towards ~135. Although triggers at 250 must be cleared before such a decline can take hold, the relative underperformance versus the broader market in combination with the considerable risk make this stock a clear “avoid” or even a short-entry below 250.
Only a solid rally above 290<>295 can cancel the bearish undertone. In all, a stock for the bearish watchlist.
- Current trend: neutral
- Outlook/expectations: recovery and consolidation on weekly chart, downside risk is greater
- Strategy: avoid or short-entry < 250
- Support: 250 / 208* / 171-
- Resistance: 284 / 290.75 / 315+
Daily chart Adani Ports (NSE)