Market expert Anshul Jain has advised investors against averaging down on Adani Green Energy Ltd and Adani Power Ltd at their current stock prices. Jain, who has maintained a cautious stance on most Adani group companies since early June, believes both energy stocks are poised for deeper corrections, offering more favorable entry points for long-term investors at lower levels.
Expert Recommends Patience for Adani Green, Adani Power
Jain’s commentary comes as Adani group stocks continue to draw significant retail investor interest, particularly in the power and renewable energy sectors. His insights suggest a disciplined approach to accumulation, emphasizing the importance of waiting for technically strong support zones.
Adani Green: Expect Further Correction
Regarding Adani Green Energy, Jain was explicit about his strategy. "I was very clear that I booked profits and exited. One down move will come," he stated. He anticipates the stock could drift towards the Rs 1,160-1,174 range, advising against purchases at present levels. This indicates a belief that the risk-reward equation will improve significantly after a sharper decline.
Adani Power Nears Critical Support
A similar outlook was shared for Adani Power. While acknowledging the stock has approached immediate support, Jain suggests its downside move may not be complete. "Adani Power has come to immediate support. Probably, you may get to see the Rs 182 level," he explained, indicating this level as a potential buying zone.
Broader Adani Group View
Jain’s overall perspective on the Adani conglomerate remains conservative. He noted that while he holds a limited constructive view on select names, his general caution has persisted for weeks. He highlighted Adani Ports and Adani Enterprises as having a "relatively better" chart structure, implying a more uneven setup across the broader group of companies.
Why Expert Advice Matters for Investors
This guidance from Anshul Jain underscores a crucial market principle: long-term conviction in a company does not always justify averaging down at every dip. His preference for defined support levels suggests that even fundamentally strong stocks can be susceptible to near-term technical weakness. Investors are encouraged to consult qualified financial advisors before making any investment decisions, as this information is for informational purposes only.