Exit Adani Power on rally: Agarwal

Sanjeev Agarwal, CEO, Dynamix Research & Capital Management suggests to exit Adani Power on any strong upside, still if one gets it and buy it back again around Rs 40.

Agarwal told CNBC-TV18, “Adani Power chart has given a very strong pullback after a fall but I feel that this news based euphoria may die down soon. It has very strong resistance at two points, one is at Rs 51.5 and another is at around Rs 55. I think the investor should be trying to exit around these two levels around Rs 51.50 or below Rs 55 because this stock will get strength only above Rs 55 and wait for the lower levels around Rs 40 to reenter again."
He further added, "I think that will be a better strategy for a long-term holder or maybe trader because this downtrend which had started in the January last week in the whole of the stock market is not yet complete. We are just seeing a pullback rally towards that and its likely to finish somewhere around mid to end April, somewhere between April 20 or April 25. So, ideally I will suggest to exit on any strong upside, still if one gets it and buy it back again around Rs 40.”