The stock rallies of Gautam Adani's companies, which expanded their fortunes by beating all other billionaires globally, are set for a reversal.
TD Sequential, a widely followed DMark technical indicator that forecasts a three-time decline at Adani Enterprises Ltd since 2009, suggests that shares fell nearly 6% last week.
The stock continued to reduce its profit by more than 100% for the year. It also hints at losses for shares of Adani Total Gas Ltd and Adani Ports and Special Economic Zone Ltd.
Adani, who started the year as number 14 on the Bloomberg Billionaires Index, rose to second place last week before his company shares plunged and made some gains in his wealth.
Shares of his flagship Adani Enterprises rose to a record last month, and some of his companies, including Adani Total, have climbed more than 1,000% over the past two years.
"Technical indicators suggest that these three adani group stocks will face significant headwinds," said Kunal Kansara, co-founder and strategist at Mumbai-based Curl Capital. "
The TD sequential study, a market timing indicator that uses a method of counting applied to chart patterns, suggests a reversal of the rally in three Adani stocks.
The last trend reversal signal at Adani Ports — flashed in 2021 and is still active with a negative forecast — is the second since its listing in 2007, while the stock on Adani Total since August is the first since its public debut in 2018.