Adani Enterprise – Elliott Wave with Time Cycles – Will It Break 3100?

Elliott wave along with Time Cycles help us to understand the maturity of trend with clear trade setups.

Adani Enterprise FPO of 20000 crore is in jeopardy post the accounting fraud report issued by US research firm Hindenburg just before the FPO was about to open.

Adani Enterprise Daily chart:

Elliott wave analysis – Adani Enterprise looks to have completed a clear 5 waves on upside post which we are seeing a collapse. The stock has corrected till 50% retracement level of the rise with next support near 2547 which is 61.8% levels.

The major trend for the stock looks to have reversed on downside as the fall is impulsive and we are currently in 3^rd wave which is most violent. Post completion of wave iii we can expect overlapping rise in form of wave iv that will retrace prices back towards 3100 – 3200 levels. After that the downtrend can again resume probably towards 2547 or lower levels. So from medium term perspective the stock looks to be in sell on rise mode.

55 Days Time cycle – We can see that stock is managing to form a low near 55 days since 2022. However, the magnitude of rise differs. As the major trend is now on downside we can expect only a pullback in form of wave iv. So a relief rally is possible post 9^th February 2023 which is 55 Days cycle low.

In a nutshell, breach below 2715 will resume downtrend in this stock towards 2547 levels and break above 3000 is must which will take prices towards 3100 – 3200 zone which is also the FPO offer levels.

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