ADANI PORTS & SEZ LTD – Rectangle PatternADANI PORTS & SEZ LTD – Technical Chart Analysis
(As of April 16, 2025)
1. Pattern Structure and Breakout Observation
Adani Ports has formed a Rectangle Pattern over the last 4 months, consolidating between the ₹1200 resistance zone and the ₹1050 support zone. This pattern reflects a period of indecision and accumulation, typically resolved by a directional breakout.
- The stock has successfully broken out above the key horizontal resistance near ₹1200 on increased volume.
- This breakout indicates that the supply zone has been absorbed, and fresh demand is stepping in.
- The width of the rectangle (~₹150) gives us a projected target for the breakout, which places the next major upside zone around ₹1350.
This is a valid and tradable breakout, given the timeframe and price behavior.
2. Volume Analysis
Volume is confirming the strength of this breakout:
- On the breakout day, volume spiked sharply, which indicates strong institutional or smart money participation.
- Throughout the consolidation phase, volume remained controlled, suggesting accumulation rather than distribution.
- The volume thrust on breakout is a classical sign of pattern validation and buying strength.
Such volume behavior improves the reliability of the breakout and indicates potential for follow-through.
3. Candlestick Analysis
Candlesticks provide additional confirmation:
- The breakout candle is a bullish marubozu with little to no upper or lower wick, showing strong conviction and sustained demand throughout the trading day.
- Prior to breakout, we also saw a series of higher lows forming, which hinted at increasing buying pressure.
- No major rejection candles are visible at the breakout level, further strengthening the bullish case.
This candlestick structure reflects strong control by buyers at key resistance levels.
4. Key Trading Levels
- Breakout Level (Resistance Turned Support): ₹1200
- Support Zone: ₹1050 – This has held firm multiple times during the rectangle formation.
- Target 1: ₹1320 (Conservative target based on mid-pattern projection)
- Target 2: ₹1350–₹1360 (Full range breakout projection)
- Stop Loss: Below ₹1165 – recent swing low inside the pattern
These levels offer key zones for trade management and re-entry upon pullbacks.
5. Trade Setup and Strategy
The breakout is suited for swing and positional traders looking to capture medium-term moves.
- Entry Point: Above ₹1200–₹1210 zone. (Early breakout entries may already be filled, but pullbacks to ₹1210–₹1220 are still valid.)
- Stop Loss: Below ₹1165 to protect against false breakout and whipsaw.
- Target Zones: ₹1320 and ₹1350 as discussed.
- Risk-Reward Ratio: Currently stands close to 1:2.5, offering a well-aligned trade setup.
Traders can consider adding on dips toward the breakout zone with a tight stop.
6. Final Summary
Adani Ports has broken out of a 4-month Rectangle Pattern at ₹1200 with strong volume and momentum. This breakout marks the end of a consolidation phase and the beginning of a potential trend continuation or fresh upside leg.
The structure, supported by volume and bullish candlestick behavior, makes this a technically valid breakout. As long as the price holds above ₹1200, the sentiment remains bullish with scope toward ₹1320–₹1350.
