May 20, 2024


Aegis Logistics


Aegis Logistics marked by a significant shift in its price action. Detailed scrutiny of its daily chart reveals a pivotal occurrence: the emergence of a bullish candlestick precisely on the middle Bollinger band after a 19 per cent correction from its recent peak. 


This nuanced observation is complemented by a compelling insight from the indicator analysis, as the daily stochastics depict a hidden bull divergence. This convergence of technical signals not only underscores the resilience of Aegis Logistics amidst market fluctuations but also amplifies the optimistic sentiment surrounding the stock. 


Consequently, informed market participants are urged to contemplate initiating long positions within the suggested price range of Rs 595-600, anticipating a targeted ascent to Rs 640. Prudence dictates the implementation of risk management strategies, with a recommended stop-loss order positioned near Rs 675 on a daily closing basis, ensuring mitigation against adverse price movements.


Titan


Since reaching its peak around the Rs 3,800 mark on April 1, 2024, the market has experienced a significant downturn, with a decline of nearly 600 points, translating to a 16 per cent loss in price. 


However, amidst this downturn, a compelling opportunity has emerged. Presently, the market exhibits a Bullish AB=CD Pattern with a 1:1 leg ratio, signalling a potential reversal near the Rs 3,200-3,250 zone. 


This pattern, coupled with a noteworthy observation from the Relative Strength Index (RSI), adds to the allure of the current juncture. The RSI indicator reveals a complex structure resembling a W shape within the oversold zone, suggesting a robust potential for an upward price movement. 


Given these favourable technical indications, investors are encouraged to consider buying within the Rs 3,300-3,250 zone, with an optimistic target set at Rs 3,500. To safeguard against adverse price movements, it’s advisable to implement a stop-loss order at Rs 3,165, based on daily closing prices.


Hindustan Aeronautics Limited (HAL)

In the current market scenario, a significant event is unfolding within HAL. Analysis of its daily chart reveals the emergence of a bullish engulfing candlestick pattern, a crucial signal indicating potential upward momentum. This pattern’s occurrence aligns precisely with the daily middle Bollinger band.

This confluence of factors serves to bolster positive sentiment surrounding HAL, suggesting a favourable outlook for the stock. Furthermore, examining the indicator dynamics, it is observed that the DAILY stochastic oscillator has made hidden bull divergence. This condition typically implies an underlying bullish bias within the stock’s movement.

Consequently, market participants may consider initiating long positions within the price range of Rs 3,825-3,875, with a target set at Rs 4,100. It’s prudent to manage risk by placing a stop-loss order near Rs 3,688 on daily close basis.


(Jigar S Patel is a senior manager of equity research at Anand Rathi. Views expressed are his own)

First Published: May 13 2024 | 6:37 AM IST