Angel One Shares Surge Amid Market Optimism

Shares of Angel One Ltd. have been on an impressive run, climbing as much as 9.5% on Tuesday, marking the fourth consecutive day of gains. In fact, the stock has risen 22% over these four trading sessions!

Despite this recent surge, it’s important to note that the stock is still 33% below its all-time high of ₹3,896, which it reached back in January. So, while things are looking up, it still has some ground to cover.

Year-to-date, Angel One has been one of the poorer performers in the market, ranking as the fifth worst on the Nifty 500 index. In total, the stock is down 25% for the year.

Technically speaking, Angel One has managed to close above its 50-Day Moving Average for the first time since April, which had been a significant resistance level. With Tuesday’s gains, it also crossed the 100-Day Moving Average at ₹2,528. The next target is the 200-Day Moving Average, currently sitting around ₹2,800.

The stock recently entered a point where its Relative Strength Index (RSI) approached the overbought territory, registering at 69. Generally, when the RSI hits above 70, it indicates a stock may be overbought.

Market analyst Jigar Patel from Anand Rathi pointed out that Angel One has successfully broken above the key 2300 level, which is an optimistic sign for investors. This break suggests that the bearish trend that had weighed down the stock for months might finally be lifting.

Patel recommends buying at price levels between ₹2500 and ₹2600, setting a target goal of ₹3,200, while also suggesting a stop-loss at ₹2,225 to manage risks.

Interestingly, Angel One was one of the few IPOs that started off below its issue price yet transformed into a multibagger, debuting at ₹273 and climbing nearly tenfold since then.

According to Motilal Oswal’s Raamdeo Agrawal, the capital markets are still looking very promising. He highlighted that last month saw an almost all-time high in demat account additions, with 4.5 million new accounts opened. This growth indicates a strong and expanding market.

This year marks the first time Angel One’s shares are down on an annual basis since its listing, as the stock had shown positive returns every year prior, including a remarkable 166% increase in 2023.

As of now, shares of Angel One are trading 11% higher at ₹2,598.