Adani Ports – 30 Dec 2016

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)