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Business News/ Markets / Stock Markets/  Multibagger Adani stock hits record high. Should you buy in this rally?
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Multibagger Adani stock hits record high. Should you buy in this rally?

Multibagger stock: Adani Enterprises share price today ascended to a new life-time high of ₹3608 levels on NSE

Stock market today: Adani Enterprises share price is in continuous uptrend and it may go up to ₹3800 apiece levels in short term, believe stock market experts. (MINT)Premium
Stock market today: Adani Enterprises share price is in continuous uptrend and it may go up to 3800 apiece levels in short term, believe stock market experts. (MINT)

Multibagger stock: Despite weakness in Indian stock market, Adani Enterprises share price has climbed to a new life-time high of 3,608 apiece levels on NSE. Adani Enterprises share price today opened downside but soon gathered momentum and went on to hit new high on second successive day. This Adani group stock had hit fresh high on Tuesday as well. In fact, the stock has hit new high on 5 out of six successive session. In last six session, Adani Enterprises shares failed to hit new high on Monday only.

According to stock market experts, Adani Enterprises share price is in uptrend as it has become a holding company of Adani group. It is gaining momentum after uptrend in power stocks of the group as the group is getting dual benefit of coal trading and rising demand for power. They said that cola prices have appreciated to a larger extent and Adani group has good exposure in coal trading. So, market is expecting good numbers from the Adani group companies due to profit in coal trade. Apart from this rising power demand is also going to aid Adani group's balance sheet in upcoming quarters. They said that Adani Enterprises share price may go up to 3,800 apiece levels in near term.

Speaking on the reason for continuous rise in Adani Enterprises share price, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Adani Enterprises has turned Adani group's holding company, which is getting benefit of company's exposure in coal trading and power generation and distribution business. Recently, coal prices have appreciated to a larger extent and this is going to help in lowering of company's margins. Hence, market has gone bullish on Adani Enterprises as coal trading benefit is going to trickle down in the balance sheet of Adani Enterprises as well. Apart from this, power demand has gone northward, which is also going to help in lowering of margins of the Adani group companies including Adani Enterprises."

Advising Adani Enterprises shareholders to further hold the counter, Sumeet Bagadia, Executive Director at Choice Broking said, "Adani Enterprises shares are in continuous uptrend. It has formed Higher High and Higher Low pattern on chart that means the rally may continue in immediate short term. So, those who have this Adani group stock in portfolio, are advised to further hold the counter for 3750 to 3800 apiece levels. Fresh buyers can also buy the stock maintaining stop loss at 3400 apiece levels."

Adani Enterprises shares are one of the multibagger stocks that Indian stock market has produced in 2022. In year-to-date (YTD) time, this Adani group share has appreciated from around 1715 to 3608 apiece levels, delivering near 110 per cent return to its shareholders in 2022. However, in 5 years, this Adani group stock has ascended from around 130 to 3608 levels, giving around 2650 per cent return to its shareholders.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 14 Sep 2022, 12:36 PM IST
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