Saturday, December 28, 2024

Angel One shares sink 14% in 2 weeks. More pain ahead?

Tuesday, December 24, 2024, 8:03
This news item was posted in Business category and has 0 Comments so far.

The shares of Angel One have faced a sharp correction, declining nearly 14% over the last two weeks and 8% in just the last week. The stock, which reached a recent high of Rs 3,500, failed to sustain its momentum and is now trading around the Rs 2,900 level.This pullback has brought it near key technical support zones now.On the daily chart, the stock is still maintaining its higher highs and higher lows, being placed above the lower end of its rising channel as well as its previous swing low of around Rs 2,600.“Currently, the stock is trading around the support zone of its medium-term moving average (100 DEMA) and may see a rebound,” believes Ajit Mishra, SVP of Research at Religare Broking.Mishra stated that in the event of a recovery, the immediate hurdle at Rs 3,060 could act as a key level, and a break above this could lead to further upside towards the 3200+ zone. Conversely, he believes, if the stock slips below the Rs 2,800 level, it may retest its long-term moving average (200 DEMA) of around Rs 2,700.The downside in the stock also seems evident to the analysts as significant trading activity was observed in this zone, evident in the fixed range volume profile on the chart.“This suggests a strong accumulation area where buying interest could emerge. After a brief consolidation between Rs 2,700-2,800, a potential rebound is expected. The Rs 2,700 level is likely to act as robust support, attracting buyers, while resistance is seen near Rs 3,000,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.Also read: Stocks to buy: JPMorgan initiates overweight rating on Sagility; Indigo upgraded to buyThe combination of historical volume patterns and anticipated price behaviour indicates that the stock might consolidate before resuming an upward move, making the Rs 2,700-2,800 zone a critical area to watch for directional cues, Patel added.In the last 6 months, the shares of Angel One have increased by 12.3% and by 11.4% in the last 3 months. However, in the short and the long term, the stock has witnessed a decline.Angel One stock has cracked by 12% and 19.2% in the last one year and on a year-to-date basis respectively. The same was trading 1.6% higher at Rs 2,905.75 on the BSE around 1 pm today.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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