Despite this four-day surge, the stock is still 33% below its all-time high of ₹3,896, which it had hit in January this year.
The capital markets-linked company is still the fifth worst performer on the Nifty 500 index on a year-to-date basis, as the stock is still down 25% for the year.
On the charts, Angel One had closed above its 50-Day Moving Average on Monday, which had been a resistance since April this year. With Tuesday’s surge, the stock has even crossed its 100-Day Moving Average at ₹2,528.
Further higher, its 200-Day Moving Average is currently placed around levels of ₹2,800.
After briefly slipping into Oversold territory in July, the Relative Strength Index (RSI) is about to enter overbought territory, currently at 69. An RSI reading above 70 indicates that the stock is in overbought territory.
“Angel One has successfully broken out above the 2300 level and has managed to sustain its position above this range, signaling a shift in market sentiment toward bullishness,” said Jigar Patel of Anand Rathi.
He also said that the stock has broken out of a long-standing bearish trendline, which had restricted its upside over the last seven to eight months, suggesting that the previous downtrend is likely over and a new uptrend may begin.
“Given these factors, the stock becomes an attractive candidate for buying. Therefore, a long position is recommended in the price zone of ₹2500 – ₹2600, targeting an upward movement to ₹3,200. To manage risk, a stop-loss is advised at ₹2,225, based on a daily closing basis,” he added.
Angel One is one of the few IPOs that listed at a discount to its issue price and yet turned out to be a multibagger. The stock made its debut on the bourses at ₹273, a discount to its IPO price of ₹306 and has since surged nearly 10x from that level.
“Capital market still looks very exciting. You look at last month demat addition, it was almost (at an) all time high, 4.5 million. The way market is expanding, the way flows are, I think (the) capital market segment is going to be quite significant, and it is going to be very high quality, asset light,” Motilal Oswal’s Raamdeo Agrawal, who is also a market veteran told CNBC-TV18 on Monday.
The losses that Angel One shares have seen so far during the year is the first instance that the stock is down on an annual basis. Ever since its listing, the stock has delivered positive annual returns every single year, including the 166% that the stock surged in 2023.
Shares of Angel One are trading 11% higher at ₹2,598.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
