Polycab, KEI, Havells Crash After Adani Entry : Exit or Hold Now?

 The cables and wires industry has been rattled. Polycab shares have plunged 6%, KEI Industries fell 12%, and Havells dropped 3% after Adani Enterprises announced its aggressive entry into this competitive space. The pressure is real — and it might only get worse.

Why You Should Be Cautious

Adani Enterprises’ strategic joint venture with Kutch Copper Limited (KCL) and Praneetha Ventures signals fierce competition. Market leaders like Polycab, KEI, and Havells could face margin compression, loss of market share, and prolonged price wars.

Polycab 1D Chart Breakdown — Bearish Signals Everywhere

1. Downtrend Intact: Lower highs and lower lows continue.

2. Major Resistance Levels Holding Firm:

   • 200 EMA at 6150 is far out of reach.

   • 50 EMA (5646.57) and 26 EMA (5298.77) are acting as strong barriers.

3. Fibonacci Breakdown Likely:

   • Price heading towards 4581.67 (0.5 retracement) and possibly 4220.64 (0.618 retracement).

4. Heavy Sell Volume:

   • Institutions are exiting — not a bullish sign.

5. MACD and RSI Confirm Weakness:

   • RSI near oversold (41.52) but not reversing.

   • MACD stays bearish without crossover.

Why You Should Consider Selling

• No signs of reversal yet.

• Heavy institutional exit volumes.

• Increasing competition pressure could prolong weakness.

• Breach of Fibonacci support could lead to a free fall.

What Experts Are Saying

Brokerages remain cautious. According to a report in LiveMint, analysts have started downgrading Polycab and KEI due to rising competitive pressures. Econimic Times noted, “Aggressive market capture by Adani could erode margins for established players.” 

What to Watch Next

• Breakdown below 4220 could trigger more panic selling.

• Only sustained price above 5298 (26 EMA) will signal potential recovery — until then, selling rallies is a smart strategy.

Conclusion

Polycab, KEI, and Havells’ crash is more than just panic — it signals deeper structural challenges ahead. For now, exit on bounces or tighten stop losses. Stay out until the chart and fundamentals show real signs of strength.

Disclaimer: This article is for educational purposes only and not financial advice. Always consult your advisor before making investment decisions.

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