Adani Group Stocks Remain Steady Despite Allegations
The Adani Group, one of India's largest conglomerates, has been facing allegations of fraud and money laundering by some foreign funds. The allegations have triggered a probe by the Securities and Exchange Board of India (SEBI) and other regulators into the shareholding and trading patterns of the group companies.
However, the market seems to be unfazed by these developments, as the derivative positions of the group stocks remain steady. For the three stocks—Adani Enterprises, Adani Ports, and Ambuja Cements—the number of shares rolled over to the September series rose a bit compared to the start of the August series. However, analysts said there is no panic among market participants, as the rise in rollovers were not substantial.
Rollovers are the process of transferring open positions from one expiry month to another. A high rollover indicates that traders are confident about their view on the stock and are willing to carry forward their positions. A low rollover indicates that traders are uncertain or bearish about the stock and are closing their positions.
According to data from NSE, the rollover percentage of Adani Enterprises was 86.64%, up from 84.77% at the start of the August series. The rollover percentage of Adani Ports was 87.02%, up from 85.88%. The rollover percentage of Ambuja Cements was 86.95%, up from 85.71%. The average rollover percentage for Nifty 50 stocks was 82.83%, up from 81.54%.
Analysts said that the rollover data shows that there is no major unwinding or shorting of Adani Group stocks by traders. They said that the market is waiting for more clarity on the allegations and the outcome of the probe before taking any decisive action.
"The rollover data suggests that there is no panic in the market regarding Adani Group stocks. The market is in a wait-and-watch mode and is not taking any extreme positions. The allegations are serious, but they need to be substantiated by evidence and investigation. Until then, the market will not react much," said Rajesh Palviya, head of technical and derivatives research at Axis Securities.
He added that the technical charts also indicate that Adani Group stocks are in a consolidation phase and are trading in a range-bound manner. He said that unless there is a breakout or breakdown from the range, the stocks will not see any major movement.
"The technical charts show that Adani Group stocks are in a sideways trend and are facing resistance and support at certain levels. For example, Adani Enterprises is facing resistance at ₹1,500 and support at ₹1,200. Adani Ports is facing resistance at ₹750 and support at ₹600. Ambuja Cements is facing resistance at ₹400 and support at ₹350. Unless these levels are breached, the stocks will not see any significant change in direction," he said.
He advised traders to adopt a cautious approach and trade with strict stop losses and targets while dealing with Adani Group stocks.
Sources:
(1) Adani rollovers show market not panicky | Mint. https://www.livemint.com/companies/news/adani-rollovers-show-mkt-not-panicky-11693759883786.html.
(2) Adani rollovers show mkt not panicky. https://www.livemint.com/companies/news/markets-unfazed-by-adani-group-allegations-as-derivative-positions-remain-steady-analysts-say-no-cause-for-panic-11693759883786.html.
(3) Adani rollovers show market not panicky | Mint. https://bing.com/search?q=Adani+rollovers+show+market+not+panicky.
(4) Adani rollovers show market not panicky | Mint. https://www.livemint.com/companies/news/adani-rollovers-show-mkt-not-panicky-11693759883786.html.
(5) Adani rollovers show mkt not panicky. https://www.livemint.com/companies/news/markets-unfazed-by-adani-group-allegations-as-derivative-positions-remain-steady-analysts-say-no-cause-for-panic-11693759883786.html.
