Adani Enterprises Today, Nov 6: Stock Falls 5.28% as Traders Eye 2400 Put Build-Up

Today, we saw Adani Enterprises’ stock slip sharply. The share price fell around 5% on November 6 amid heavy derivative activity. Traders picked up significant put options at the ₹2,400 strike. That build-up suggests many are bracing for further downside. We’ll look at what triggered the drop, the option market signals, the technical setup, sentiment among investors, the fundamentals behind the company, the key risks, and what we as investors should watch next.

What Triggered Today’s Fall?

Adani Enterprises announced earlier this week a huge rights issue plan to raise up to ₹25,000 crore. At the same time, its underlying business is under pressure; in the September quarter, its revenue fell ~6% year-on-year, and core operations showed weaker earnings. These combined signals weighed on sentiment. Add to that the broader market caution around leveraged infrastructure names, and you get a recipe for a pull-back. Volume data suggests sellers were more active than buyers. So we believe the fall is a mix of weaker business signals + structural concerns around capital raising + derivatives hedging moving in tandem.

Derivatives Activity: 2400 Put Build-Up

An interesting development: a large build-up in put open interest at the ₹2,400 strike for expiry later this month. This means traders are either hedging or expecting the stock to drop below ₹2,400. Also, there have been reports of thousands of put contracts trading at the ₹2,500 strike for expiry on November 25. We interpret this as a signal of weak sentiment. When many choose puts at a strike below the current price, they expect downside risk. It also means the ₹2,400 level is now a focal support zone. If that gives way, the option pain point could trigger further movement.
Therefore, the derivatives market is sending a red flag for short-term weakness.

Technical Analysis Snapshot

From the charts: the stock has broken short-term support zones and is testing the ₹2,400 region. According to some trade ideas stock has fallen for several days straight, nd volumes have increased on down moves. Support levels near ~₹2,300-₹2,400 are critical. Resistance appears in the ~₹2,600-₹2,650 band. Indicators such as RSI show weaker momentum. Volume spikes on down days signal distribution. So our technical view: bearish bias in the near term, but a potential bounce remains if ₹2,300-₹2,400 holds. A break below that could open the way to deeper correction.

Institutional & Retail Sentiment

Institutionally, there has been some caution: mutual fund shareholding in Adani Enterprises is low (~2.45% as reported) in recent filings. Retail traders often front-run big moves in this name, given its volatility. The heavy put activity suggests the tail/trader community is positioning defensively. We as investors must note that sentiment seems tilted toward risk-off. When large option volumes accumulate on the put side, it often precedes sharper down-moves or increased volatility.

Fundamental Perspective

Let’s step back to fundamentals. Adani Enterprises is the flagship of the Adani Group. It has interests in infrastructure, airports, mining, green energy, data centres, defence, nd more.
In Q2 (Sept quarter), it reported a large increase in net profit (84% YoY),  but this was largely due to a one-time gain from the stake sale. Core revenue declined ~6%. The rights issue of ₹25,000 crore signals capital requirement for expansion, but also raises questions about dilution and existing debt.
In the long term, the business is diversified and expansion-oriented. But near term, the fundamentals leave little margin for error given external headwinds. So we conclude: fundamentals remain reasonable for the mid-to-long term, but currently they offer weak upside support in the short term.

Key Risks and Market Concerns

We see several red flags:

• Large capital raising: rights issue may dilute shareholders and raise concerns if growth does not deliver.
• Business headwinds: the coal/trading arm slump is dragging earnings.
• Option market signalling increased downside: puts dominate, showing caution.
• Debt and leverage perception: while not new, it remains a part of investor worry.
• Regulatory/geo-political risks: given conglomerate size and complexity, any adverse news could magnify moves.

Investors should treat these risks seriously before chasing this stock.

What Should Investors Watch Next?

Here are the key things we should keep an eye on:

• Price action around ₹2the ,300-₹2,400 zone. A sustained hold could stabilize; a drop below may trigger further weakness.
• Upcoming option expiry date, whether the put open interest unwinds or converts into actual sell pressure.
• Next corporate data point: business updates, related party disclosures, capital raising details.
• Institutional flow: whether major funds increase or reduce exposure.
• Volume trend: increased selling volume could confirm bra breakdown; a low volume bounce may be weak.

By monitoring these, we as investors can better gauge near-term risk and potential.

Investor Strategy

For traders: the current setup suggests caution. A stop-loss just below ₹2,300 might be prudent if one enters now on the long side. Chasing without risk control is unwise. For long-term investors: this might remain an attractive business in the multi-year horizon, but current market pricing demands patience and a willingness to tolerate volatility. A phased approach or waiting for technical confirmation could be better.

Important: This is educational commentary, not financial advice; always consult your advisor.

Conclusion

In summary, Adani Enterprises shares are under pressure today, driven by weaker fundamentals, major capital-raising plans,  nd heavy put options at the ₹2,400 strike. The technicals lean bearish for now, and the option market signals reinforce caution. However, the company’s long-term potential remains intact. What we need to watch closely is the support around ₹2,300-₹2,400, the behaviour of options expiry, nd upcoming business updates. For now, we stay alert, cautious, nd prepared for volatility.

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Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.