Adani Vs Hindenburg Complete Analysis – What Should Stocks Investors Do Now?

Now we understand why the shares of Adani group are falling continuously and there are many people who are already invested. If they have bought the shares of Adani group of companies, then what should they do in today’s rate. There are many people who are considering this as an opportunity that this is the time to buy.

The stock of 4000 is getting in the rate of 1000-1500 in today’s rates o let’s buy it. If it becomes 2000-3000, then we will have silver.  Now the analysis that I am going to show is a very useful analysis and we will understand it in detail.

Now you can see on my screen. There is an article of Business Today and it is written in this article. Hindenburg Research has published reports on the companies whose names are mentioned here. Now you understand very carefully that the names of the companies mentioned here have been reported on them.

So what happened to their shares, we do a small analysis. So here you can see the name of Nikola, here you can see Vince Finance. I have already opened companies here, you can see this example of Nikola, so almost95% of the stock has broken from 65.

Now you are seeing $ 2.73, here you are seeing Vince Finance, so this was almost 300+, it was almost 0. Here we are talking about China Metal Resources, you can see that the stock is over. You can see the condition of all these companies that all their stocks have fallen continuously.

Now when we are talking about Hindenburg, he has published a report on Adani. We are not saying that this report is right or wrong. Look, I am not going to give any judgment on it, but the thingies that he has put allegations on Adani group and you must have heard that Adani group has answered, so I will explain both the things to you. See here there are some allegations of Hindenburg Research.

The biggest allegation is that Adani has manipulated the stocks. Now how did you manipulate it, I will try to explain that to you, so there is a very big allegation of stock manipulation. The second thing they have said that whatever growth has happened, you can see that the stock that ran first, it ran because they have taken so much debt and whatever growth has happened, it is banned by debt only and the third biggest thing is that their valuations very high.

So this is an overhyped stock bubble, so these are some main things, so there were a lot of allegations, but I will summarize it to you. Now the biggest thing is that it is stock manipulation. How will the stock manipulation go? Adani is saying that my company is a listed company.

Now anyone can buy its shares. Now Hindenburg replied that who has bought your shares, we will tell you. He said that there are many investment funds based on Mauritius and according to him, according to Hindenburg, they are shell companies. What are shell companies? Shell companies have somehow made money to the shell companies. Now you have done it through the reference. And these companies have bought your company’s shares. More than 90% of these companies have holdings.

This means that they have invested a lot of money in your company in the group of companies with an exposure of almost 8 billion. So you understand 8 billion. If I understand a dollar of 80 rupees in today’s rate, then 1billion is 8000 crores and in this way you can get to know that such a big amount 64000 crores rupees they have invested in Adani group of companies. Now what does it mean to invest money? Invested money means bought shares. Now if you buy shares, then the free float shares are limited.

Now here the principle of demand and supply is that if something is less, then its price will increase. Now if Adani’s shares are not available and someone has to buy, then he will have to buy at an expensive price and this cycle continues until this bubble bursts.

I am not saying that it is a bubble, but the thing is that this cycle continues until lot of shares come in the market. Now there are many cases of this.

If you have heard the scheme of pump and dump, there are many such things in the stock market that are already running. So a stock of a company that is not available in the market and if its demand comes, then its price will continue to increase and if those stocks are bought by investing money and they are finished, then people will think that they buy from very good things.

So most of the retail investors in today’s rate are stuck in Adani. You will see that the rate above 3000 is 3000-4000.At this time, many people have put money in it. Means almost put money on the top of the valuation and after that, see this stock started falling from here. Now this research report has been brought or came. There can be many scenarios. Why because until this stock started breaking, you and I did not know Hindenburg.

I did not know. I did research only after I started to know about it. You are also listening to me today. If there is nothing like this, then we do not know about its now there are many FN birds, but I am explaining this case to you.

So the first allegation of them is that they have bought your stocks and the free float has decreased in the market. Because of this, your stocks have increased a lot. After that, the second biggest thing is that your stock is overvalued. Now how do we get the valuation?

If we do fundamental analysis, I have come to the ticker tip. If we do fundamental analysis, then we first look at the PE ratio.PE ratio means price to earnings ratio. In today’s rate, when you see the stock almost 60% broken in month, despite that, the Patio of Adani Enterprise is losing 2 to 9. If I explain in the common language, then it means that if you have to earn 1 rupee by investing, then you have to put 230 rupees.

To earn 1 rupee, you have to put 230 rupees. If this PE ratio is less, then we consider it good. Generally, the PE ratio of 20, 25, 30 is considered good, but the PE ratio above 200 is very highland that is also when 60% is broken, then even today this company is overvalued. So there is definitely a problem of overvaluation. Now the biggest thing comes that we say Adani is absolutely fine. Adani is 100% ok.

So if Adani group is 100% ok, then the people who have bought the stock in 4000 rupees, then what was their objective. Their objective was that 4000 to 5000, 6000 to 7000, 8000, then you have to understand when the price of the stock increases. The price of the stock is explained to you in the scenario of demand and supply. What is happening now is that the lower circuit is being installed continuously.

A lower circuit means that there are no buyers in the market, there are only sellers. Everyone is selling because everyone is selling and here you understand that there are no buyers, then the lower circuit is installed in the stock. Now if we look at the chart, then you will see a hammer on the daily time frame. Now if I do chart analysis here, then the first thing I will see is that the stock is in downtrend.

The second thing is that I can see a strong hammer candle here. If this hammer has a high break, it could be that this stock can go up from here. If it breaks its low, then this low is also below 1000.

It can be too late to exit from this stock. See if I give my own advice, then I do not suggest anyone that you invest in any such stock that is in downtrend. Now you will feel that you can bounce back from here.  We should not invest money on the basis of our own analysis. For example, I will give you the ES bank. If you understand the ES bank, then this stock at one time, I will just show you this stock at one time, it comes a little behind, then you will see that this stock was around 400rupees at one time.

It was around 400 rupees and from 400 rupees, this stock fell down to 5 rupees. So one thing that was 400 rupees when it started breaking, you assume that people invested160 rupees in this scenario. It is very cheap. After that, see it again went up to 280 levels, but then it broke more from there.

As long as there is a stock on its downtrend, we cannot say that you have invested money on this stock. I will not suggest such a technical analysis. Now these were some pointers that were necessary for you to know. Now see Hindenburg Research publishes reports on companies. We have seen that their stocks fall.

They have a main business that they do short selling in the market. What is short selling? If you buy stocks, if the stocks increase, you will benefit, but if the stocks break, then it can be beneficial even if it breaks.

When we trade in India, we have heard the name of Nifty in Nifty. So you can trade in futures and options. You can do short selling in this. So if you make a position in the futures or options, then You can has a big profit even if the stock falls. So now who is behind this short selling. Short selling Hindenburg Research openly says that we do it, but how big position they do it, people may not know. I have not yet got information about it on the internet, but definitely they can earn lot of money and they will definitely earn by short selling.

Now we have seen that Adana Enterprise has fallen by almost 60% in the last month, but how much did Nifty fall? Look here, Nifty has been corrected by only 1% in the last month. Now I tell you one thing. There is very interesting data. The budget has come. You all saw that the budget has come overall good. You pick up the data of the last 10 years. As you see the Karina platform kills numbers in the market, kills numbers, and when thereafter the release of the Nifty, the market generally rallies.

Nifty 1% would have broken is a stability or what is the asset OUT.in the last month, but if you look at the chart of Nasdaq, then it has increased by 17% in the path, the Yes or Then you have to go with normal methods, something to provide month. S&P 500 has increased by almost 9.3% in a month. Nifty, despite falling 60% of And we can’t live with that today.no alternatives.  Adani., it did not get majorly correct.

One thing is that ouroverall economy is strong.US look good…Adani enterprise is a part of Nifty 50, but despite falling 60%of it, there is no major correction in the market. So this can be a good point and generally after the market there is a rally, so that rally may be coming soon.

So if that rally is coming soon, then you just keep an eye on the charts. You will definitely find some good opportunities in the market. So I do not recommend any stock of downtrend. Until stock does not come in its uptrend, do not invest money in it.

The second thing is that you will definitely invest money by doing fundamental analysis, then you will lose less. I give suggestions to people that if money comes, then it should not go later. You should protect your capital. If you still feel that I have lost, let’s see more, then it can increase.

If today your 100 rupees is 40 rupees in front of your eyes, 50 rupees are left, then I will say save 100 rupees. You will see more opportunities in the market. After doing analysis, there are two types of analysis, fundamental and technical.

So invest money after doing analysis. So I will give you a summary. The biggest summary is that the research report of Hindenburg here, the allegations in it, the biggest point in that allegations that it is overvalued Adani group of companies’ stocks, which according to me are somewhere.

I cannot talk about the allegations, so it will come out later and I am not saying that according tom own, they tell us the analysis that if you look at the overall rate today, then the ratio is very high, so I will not consider investment in it, nor will I stress you.

Secondly, if you understand today’s rate, then you will understand overvalued. The second thing is that it will be difficult for Adani group of companies to raise new capital. Many people will say that you have just seen that FPO has come.

FPO has been subscribed 100%, people still have this key. You will see carefully how much money the retail investors have invested in it. Finally, if you understand the overall view, then this big crisis at the moment, is it with the whole market? Is Nifty falling? We have seen that Nifty has not been majorly correct. The second thing is that all the sectors are falling.

The Adani group of companies in which the sectors are all the sectors are sinking. Sectors are not even sinking. Thesis a company specific problem. So if it is a company specific problem, then there Isa problem with the company. There is no problem with the market, so it is more important for you to understand this thing.

Finally, I would like to give you conclusion from my side. If you understand very carefully, then you have seen that Adan enterprise has been almost60% correct in the last month, but Nifty has been majorly correct.

The answer is no, so I can see that the economy is robust somewhere. Second, the sectors in which the Adani group of companies are falling, the whole sector is not falling. Thesis a company specific problem because it is a company specific problem, then you should have faith in the market.

You can see a rally in the future from here. Finally, one more question will be in your mind that there are many banks that have given loans to Adani. SBI has given a lot of loans. LIC has also invested a lot of money. So what will happen to them? See if Adani could not repay the debts from here, could not bounce back, then definitely it can affect some companies. Now I told you what to do. This is important.

First of all, you have to get out of the greed mindset that it will increase from here. We do not know how much stock can fall and how much it can increase. So I do not know the bottom. You do not know the top. We do not know, so we can only follow the price.

If the company grows lot from here, you feel that the company’s revenue from here is going to double in the next few years. It is going to be ten times, then you will definitely see the stock price running. Soothe stock prices are all about the future.

What does the market think in the future? So I explained to you that there can be many types of manipulation here. So if there Isa report, it is not that we will ignore it and say that thesis very good. So you do your analysis. After that, take the decision of investment. See whatever I said, I do not say that you trust all my words. I say that you do your own analysis. I can only tell you what my analysis says. Finally, how did you like this analysis? You can Tellme. Thank you so very much.