Shares of Adani Wilmar Ltd are trading near their yearly low hit in February this year. The Adani Group stock fell to a 52-week low of Rs 327 on February 28, 2023. In the last trading session, the scrip ended at Rs 337.05, down 3.34% on BSE. The level of Rs 327 is crucial, according to Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One.
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“As far as levels are concerned, a decline below Rs 327 could aggravate further sell-off. On the higher end, the immediate resistance is placed around Rs 370, followed by Rs 395 in the near period.”
The stock is down 55.75% from its 52 week high of Rs 761.75 reached on October 7, 2022.
In its Q2 business update on October 5, Adani Wilmar reported a strong double-digit volume growth on the back of strong rural sales. However, in spite of growing volume, the value of sales declined on a year-on-year (YoY) basis.
Despite a good show in Q2, the Adani Group stock is down 3.64% from the October 5 close of Rs 349.8 on BSE.
Abhijeet from Tips2trades said, “Adani Wilmar has been bearish on the Daily charts with strong resistance at Rs 349. A daily close below support of Rs 332 could lead to a target of Rs 316 in the near term.
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” The stock has lost 18.42% since the firm’s Q1 earnings were announced. It stood at Rs 413.20 on August 1. The firm reported a loss of Rs 79 crore in the June 2023 quarter. Net profit for Q1 of last fiscal stood at Rs 194 crore. Consolidated revenue slipped 12% to Rs 12,928 crore YoY decline against Rs 14,724 crore, reflective of steep decline in edible oil prices.
EBITDA slipped 71% to Rs 130 crore in the June 2023 quarter against Rs 443 crore in the Q1 of last fiscal.
In the current session, Adani Wilmar stock was trading 1.35% higher at Rs 341.60 on BSE.
Total 0.10 lakh shares changed hands amounting to a turnover of Rs 34.81 crore on BSE. In a year, the stock has fallen 53.87% and lost 43.48% this year. Adani Wilmar stock has a one-year beta of 1.6, indicating high volatility during the period.
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In terms of technicals, the relative strength index (RSI) of Adani Wilmar stands at 37.2, signaling it’s trading neither in the overbought nor in the oversold territory. Adani Wilmar shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.
