Why adani green shares are falling? When will it recover? Is there any speculation?
What goes up, eventually comes down. Some physics laws are applicable in share market even.
Look at the PE ratio, I don’t know if it’s accurate or not but still such anomalies across it’s peers don’t sustain for much longer. Also it may not be a pump and dump but it sure attracted a lot of flies and a stock which attracts a lot of attention the end game is typically catastrophic (Idea, Yes Bank… the list is endless)
Someone posted the same question in January in this forum, look at my reply Why ADANI GREEN IS rising so drastically ?
The Euphoria has died for this cycle and panic has reigned, when the cycle changes it could be the same game again.
If you had used even a simple indicator as RSI it would have warned you to be cautious, You should have used a SL on daily basis, also sometimes it’s not worth to try to catch these stocks, sure they could provide excellent returns but if you are caught in the wrong end of the trade it’s rarely ends well.
Adani Green Energy is the only listed company in the pure renewable energy sector. Therefore it has no peers for us to compare its valuation with. Most stocks with high PE ratios have a moat or enjoy a monopoly/duopoly in the market and investors tend to see beyond numbers. Investors here seem to be considering the massive demand and growth potential in renewable energy in the forthcoming several years.
Why is it hitting LC? Well the rally has to end at some point right? We had a similar LC-UC movement in another moat company IRCTC recently. If you are a long term investor and have properly researched the company, you shouldn’t worry too much about these circuit-to-circuit movements.