Investors holding shares in Adani Enterprises Ltd and Adani Green Energy Ltd should continue to do so, according to Akshay Bhagwat, Senior Vice President for Derivatives Research at JM Financial. Bhagwat's advice, given during a Business Today Television segment, emphasizes that technical indicators do not yet signal any meaningful correction for these Adani group stocks.
No Need to Book Profits, Momentum Remains Strong
Bhagwat's core message to investors, particularly those with significant gains, was unequivocal: “There is absolutely no need to book profits unless you need liquid cash at this point of time.” He highlighted that the technical charts for these stocks do not hint at any corrective action, suggesting that the current rally still has resilience.
This guidance came in response to a query from an investor whose family had acquired Adani Enterprises at an average price of Rs 110 and Adani Green at Rs 10, leading to substantial multi-bagger profits. For such long-term holders, Bhagwat argued against setting premature profit targets, stating, “Setting targets would just be limiting your profits.” He advocates for a trend-following approach: remain invested as long as the market structure remains strong, only reassessing if liquidity needs change or technical charts deteriorate.
Resilience Despite Past Volatility
The expert contextualized the current stability against the Adani group's tumultuous past, recalling Adani Enterprises' sharp decline from Rs 3,900 to Rs 1,000 between 2020 and 2023. His view is that investors who have already weathered such significant drawdowns may benefit more from patience now than from hasty exits.
This advice is particularly relevant given the broader market's recent volatility, where some segments faced pressure while others, like banking and financials, showed resilience. In such uncertain environments, investors often seek to lock in gains from strong performers. However, Bhagwat's analysis suggests that the Adani group's counters have not yet displayed the technical weakness that would justify such a move.
Key Takeaway for Existing Shareholders
For current shareholders, the central question is not whether these investments have delivered extraordinary returns—which they clearly have—but whether the underlying trend has broken. According to JM Financial's technical reading, the answer, for now, remains no.
Disclaimer: This article provides information for educational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.