Adani Total Gas Shed 15% In 2-Days Losing Streak After A Month-Sharp Rally; Will It Fall Below Rs 1,000?

Adani's natural gas stock, Adani Total Gas is under huge selling pressure for the second consecutive sessions, struggling to retain its Rs 1,000 mark which was garnered over the last month's bulls bandwagon. On Wednesday, Adani Total Gas is down by as much as 10%. Toppled by bears since yesterday, Adani Total Gas has nosedived by at least 14.5% in two days.

At the time of writing, Adani Total Gas stock price was trading at Rs 1,009.60 apiece, down by Rs 103.65 or 9.31% on BSE with market cap a little over Rs 1.11 lakh crore.

This Adani stock dipped by at least 9.97% in the early trade after hitting an intraday low of Rs 1,002.25 apiece.

On the previous day, Adani Total stock was at Rs 1,113.25 apiece.

Talking about the latest performance, Jigar S. Patel, Technical Analyst at Anand Rathi told GoodReturns that "After a massive bounce back from a 50% retracement of its previous historical up move, it looks like ATGL is in some profit-booking mode."

In a month, Adani Total Gas has rallied by a whopping more than 86% on BSE. The stock was below Rs 550 levels on November 13. But shot up to cross over Rs 1,170 mark on December 11th.

On year-to-date, Adani Total Gas is still down by more than 71%, a setback which appeared after the scandalous report by US short seller Hindenburg on the billion dollars worth conglomerate Adani Group. Adani Total Gas is still far away from its pre-Hindenburg era, and its 52-week high of Rs 3,998.35.

Will this latest bearish sentiment push Adani Total Gas below Rs 1,000 mark? Patel said, "At the current juncture, we may see a correction until the 850 zone, which would be an ideal price for re-entry for longs."

As per Trendlyne data, Adani Total Gas' relative strength index (RSI) and money flow index (MFI) are at 82.3 and 89.5 respectively. Generally, RSI and MFI above 80 is considered strongly overbought. This implies that stock may show pullback. Notably, the stock's weekly average delivery volume is 33.91%.

Last month, Adani Total Gas announced the initiation of a pioneering 'Green Hydrogen Production and Blending Pilot Project'. As part of the project, ATGL will employ the latest technologies to blend Green Hydrogen (GH2) with natural gas for over 4,000 residential and commercial customers at Ahmedabad, Gujarat.

This project is expected to be commissioned by Q1 FY24-25 and the percentage of green hydrogen will be gradually increased in the blend to upto 8% or more, depending on regulatory approvals.

With this pilot, ATGL would like to partner with various stakeholders including regulatory authorities to share its firsthand learning and develop ecosystem about hydrogen blending in city gas distribution in India.

ATGL is developing city gas distribution (CGD) networks to supply piped natural gas (PNG) to industrial, commercial and domestic (residential) customers and compressed natural gas (CNG) to the transport sector.

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