Adani Port Share Price Recovers, But Questions Arise On SEBI Member’s Links To Adani – CryptoNewsTo

Adani Port Share Price Recovers, But Questions Arise On SEBI Member’s Links To Adani


Adani Ports share price recovered slightly on Feb 3, but the Adani Group's troubles are far from over.
Adani share price recovered slightly on Feb 3, but the Adani Group’s troubles are far from over.

PATNA (CoinChapter.com) — Adani Port shares price (NSE:ADANIPORTS) today recovered some of its losses from the past few days. However, the woes plaguing the Indian conglomerate are hardly over, with the group’s market cap slashed by more than half after the release of the Hinderburg report.

In a new update, Adani’s links with one of the members of a Securities and Exchange Board of India (SEBI) Committee raised questions of conflict of interest.

Posts on social media pointed out that the daughter of lawyer Cyril Shroff, Paridhi Shroff, is the wife of Karan Adani, CEO of Adani Ports and Gautam Adani’s son. In addition, Cyril Shroff is a member of the SEBI’s Committee on Corporate Governance and Insider Trading.

Given the demand for a SEBI and RBI investigation into the allegations against the Adani Group, Shroff’s association with SEBI would serve as a conflict of interest.

Related: Adani Enterprises (NSE: ADANIENT) Share Price Crashes 66%, Lands On ASM Radar

A section of Twitter users also wondered if the Shroff connection was why SEBI did not act harshly against the Adani Group, whose share price has fallen dramatically after US-based short-seller Hinderburg Research released a report calling the group “the largest con in corporate history.”

Mahua Moitra called for Shroff to recuse himself from the committee.
Mahua Moitra called for Shroff to recuse himself from the committee.

MP Mahua Moitra called out Shroff, asking him to recuse himself from the committee to ensure a fair investigation. “Perceptions are Reality,” Moitra reminded Shroff.

Additionally, discussions on the Adani share market rout rose in corridors of government as Lok Sabha proceedings were adjourned till 2 pm on Feb 3. The opposition was protesting to demand a probe into the fraud allegations against Adani Ports, Adani Enterprises, and other Adani Group companies.

Adani Port Share Price Recovers Slightly

Adani Ports share price dropped to its lowest level since Nov 2020 on Feb 3, before bulls started to buy aggressively. However, the sharp recovery might be due to profit-booking by short sellers than a positive outlook.

The Adani Port share price rose more than 28% from Friday’s low of INR 395 before closing trading at INR 498.8. The recovery follows two days of downtrend, which saw Adani Port share price plunge nearly 33% from Feb 1’s high of INR 629.

The relative strength index for ADANIPORT remained oversold, clocking at 18.9 on the daily timeframe. Adani Port share price’s mild recovery failed to bring the RSI back inside the neutral region.

Also Read: Over $3M Gone in Orion Protocol(ORN) Hack

Traders often consider oversold RSI levels an indicator of an impending bullish trend reversal. Hence, the pattern acts as a buy signal for market participants. However, it seems unlikely ADANIPORTS price recovery was due to buying pressure from oversold RSI levels.

ADANIPORT/INR daily chart with RSI and a death cross
ADANIPORT/INR daily chart with RSI and a death cross. Source: Tradingview.com

Yet, if buyers continue entering the market, Adani port share price might rise to challenge resistance near INR 513.9. Furthermore, a break and hold above immediate resistance could help ADANIPORTS price to rise to INR 570.7 before retreating.

On the other hand, the 100-day EMA (blue wave) trendline crossed below Adani Port share’s 200-day EMA (green wave) to form a bearish pattern called the death cross on Feb 3. Market participants consider the pattern an indicator of negative investor sentiment and a sell signal.

As a result, Adani Port share price risk falling to test support near INR 457.2. Moreover, breaching immediate support could adversely hit market confidence in ADANIPORTS share performance.

As a result, the Adani Port share price might shed 17% from current levels and drop to support near INR 414 before recovering.

The post Adani Port Share Price Recovers, But Questions Arise On SEBI Member’s Links To Adani appeared first on CoinChapter.





Source link