Are ADAG shares, which witnessed solid gains with heavy volumes, showing signs of changing fortune?

on the weekly chart, the stock is forming a stage 2 consolidation pattern that has a depth of 27 weeks.

The selling rout, which had begun last Friday, is seen extending on the first trading session of the week as Nifty and Sensex lost more than a per cent each. Nifty has slipped below the 17,600 mark while Sensex dropped briefly below the 59,000 mark.   

Talking about the performance of the sectoral indices, barring Nifty FMCG, all other sectors are bleeding red, led by Nifty Bank and Financial Services.   

Meanwhile, the ‘King US Dollar index’ is seen hovering near its 20-year high at 108.1. A strong dollar is negative for emerging equity markets like India as it triggers capital outflows from FIIs.   

Amidst all this chaos, as the saying goes ‘champions are made on hard days’, we are seeing the shares of Anil Dhirubhai Ambani Group (ADAG) companies buzzing on the bourses despite the severe sell-off in the benchmark indices.   

The stocks are up in the range of 3.6 to 6.5 per cent in the early part of the trading session with Reliance Communications’ shares locking at the upper circuit.   

Interestingly, this upmove has been backed by a spurt in the volume. Amongst all the stocks of this group, Reliance Power has been the top-performing stock as it jumped nearly 6.5 per cent. It also touched the levels that were witnessed in mid-April of this year. Talking about volumes, the stock has seen more than a two-fold rise in the total volume traded when compared to its 20-day average volume. At the same time, we have already seen nearly 80 per cent of the total volume of the prior trading session being just halfway through Monday’s trading session.  

The same is the case with the second-best performing stock, which is Reliance Infrastructure. The stock has jumped more than 5 per cent and the total volume traded is already above the 20-day average volume. Moreover, on the weekly chart, the stock is forming a stage 2 consolidation pattern that has a depth of 27 weeks. Interestingly, it has a RS rating of 87, which is good, indicating its outperformance as compared to other stocks.   

Meanwhile, Reliance Capital has advanced nearly 4 per cent and is inching close to its upper circuit limit of the day.   

Let’s check out the long-term performance of these stocks in the last couple of years:  

All the stocks have delivered handsome returns with two stocks turning out to be multibagger ">Multi-baggers- Reliance Infrastructure and Reliance Power. Meanwhile, Reliance Capital and Reliance Communications added 45 per cent & 2 per cent, respectively.