The budget is over but Adani fiasco continues creating a lot of uncertainty in the markets with direct effect on banks and other financial institutions. Uncertainty creates panic and illogical moves. So, my take on Adani story.
A 5 or 10 employee research firm comes out eith negative report on Adani grp - accusing the group of loan mismanagement and share price manipulation. It's simple, if global firms who are failures comes out with reports after creating short positions. After dome tu tu main main, credit suisse jumps in declaring they will not accept adani bonds. Credit Suisse is a failing Bank with history of dubious business deals.
The problem is now SEBI has decided to investigate the matter. Create shorts, come out with negative research reports, create more shorts, now ask your partners to talk nonsense and hammer the stock and the business.
The withdrawal of the FPO last night is a highly calculated high risk move. Just think , you have withdrawn the biggest FPO in India, it wont look good. It shows lack of committment fron the promoters to fight back which will hammer the stock more.
Valuations comes from business, cash flows, ratios etc but premium valuations come only from business clout, reputation, global respect etc. This is the real loss of Adani grp.
As the great writer Sun Tzu said in the book "The Act of War"
"You may have to loose a battle to win a war". Looks like that's what Adanis did last night. Adani group stocks will tank by 25% and donot try to catch a falling knife.
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Nifty. After volatility, support is now firmly placed at 17400 and resistance at 17675. Newsflow can put 17400 in danger.
BankNifty. Whata reversal yesterday ! Support is placed at 39850 and resistance at 41000.
GAUTAM ADANI says The Board takes this opportunity to thank all the investors for your support and commitment to our FPO. The subscription for the FPO closed successfully yesterday.
Despite the volatility in the stock over the last week, your faith and belief in the Company, its business and its management has been extremely reassuring and humbling. Thank you.
From Kailasa:
The money that Adani had given to Adani was used to subscribe to Adani but now it has been returned by Adani to Adani so that it can be used by Adani.
- Swami Nithyananda !
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