Following a month-long surge, profit-booking caused Adani Total Gas to drop 7%

 Following a month-long surge, profit-booking caused Adani Total Gas to drop 7%

Adani Total Gas's stock dropped more than 7% as a result of profit-booking. Although the stock has increased by 92% in the last month, it is still trading 71% down year to date.

Adani Total Gas shares dropped more than 7% on December 13 as investors attempted to take some money off the table early, according to experts, after a 90% increase in the previous month.

In an effort to warn investors about the extreme volatility of share prices, the BSE and NSE have put Adani Total's securities under a short-term ASM (additional surveillance measures) framework.

Adani Total Gas's stock was down 6.84 percent on the NSE at Rs 1,038 as of 10:10 a.m. Shares of multi-baggers have increased by almost 92% throughout the last month. of which the past week alone saw a 65 percent surge.

Stock markets asked the Adani group firm to provide an explanation for the sudden spike in share price. The corporation said that "the increase in trading volume/price of shares is entirely driven by the market."

The management is not in possession of any information that has not yet been revealed to the stock market but might influence price movement. "If there is any development that necessitates disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Criteria) Regulations, 2015, we will do it as per the regulatory requirements."

Investors booked profits in response to Adani Total Gas's comments, which caused the stock to drop by about 10%. On a year-to-date (YTD) basis, the stock is trading 70% down despite its recent rally. This is due to the stock experiencing significant asset losses in the wake of US-based short seller Hindenburg Research's harsh criticism in the first part of January.

Osho Krishna, senior research analyst, technical and derivatives at Angel One, advises investors not to become complacent just because the stock has surged dramatically. Strong support is seen in the Rs 900 levels, while a little respite may be found between Rs 1,050-1,000. At higher levels, investors should go long for positive prospects towards Rs 1,250 as long as it stays above the indicated support zone. Dips to -1,260 are probably going to be used immediately for the position, he said.