The near-term outlook for the stock of Adani Ports & Special Economic Zone is positive. It is on a corrective rally. Investors with a short-term perspective can consider buying the shares at current levels.
The stock surged 5.8 per cent on Wednesday. Also, the stock has skyrocketed over 18 per cent so far this week, thereby wiping out the losses made in the previous week.
Wednesday’s rally has taken the stock well above its important resistance at Rs.208, which is the 38.2 per cent Fibonacci retracement level, and Rs.210, the 21-day moving average.
These levels could very well act as support now and limit the downside for the stock. An immediate rally to Rs.219 – the 50 per cent Fibonacci retracement resistance looks likely. Further break above this hurdle can take the stock higher to Rs.225.
Traders with a short-term perspective can go long. Stop-loss can be kept at Rs.207 for a target of Rs.221.