The near-term outlook for Adani Ports and Special Economic Zone is negative. The stock has been falling continuously since the beginning of this week. It fell 3.4 per cent on Thursday and is down over 10 per cent for the week.
Prior to the current fall, the stock was on a strong uptrend. It had surged 47 per cent from the February low of ₹169.65 to a late March high of ₹249.8.
However, the stock then faced strong resistance near ₹250 last week and has reversed lower.
Thursday’s fall has taken it well below the key 55-DMA and also the 38.2 per cent Fibonacci retracement support, both poised at ₹219. The region between ₹219 and ₹221 will be an important resistance now. A fall to ₹210 and ₹207 looks likely in the coming sessions. Traders with a short-term perspective can go short. Stop-loss can be kept at ₹222 for a target of ₹210. Intermediate bounce to test the ₹219-₹221 resistance band can be used to accumulate short positions.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)