Angle One, MOFSL: Here's what tech charts suggest for brokerage stocks

Shares of Angel One shed over 2 per cent in the intra-day trade on Monday after investors complaint about outage of the stock broker's services. Investors and traders took to social media to highlight log-in, and order execution related issues. Replying to users, Angel One responded on Twitter that the issue was being identified, and fixed by the tech team.

Other brokerages were trading largely negative in a firm market as well. Barring Arihant Capital, which surged around 3 per cent in trade, and Motilal Oswal Financial Services (up 0.2 per cent), Swastika Investmart, Geojit Financial Services, Emkay Global Financial Services, and LadderUp Finance declined in the range of 0.4 per cent to 4 per cent. 

Meanwhile, the number of dematerialised (demat) accounts added during the September quarter for the 2022-23 financial year (Q2FY23) was the slowest since Q1FY21. During Q2, 6.1 million new accounts got added, taking the total tally to 102.6 million. 

At 6.3 per cent quarter-on-quarter (QoQ) increase, the growth was slowest since the lockdown-hit Q1FY21, which had logged 5.7 per cent QoQ growth. In absolute terms, the growth was lowest since Q4FY21 when 5.3 million new accounts were added. READ MORE

At the bourses, MOFSL has plunged 23 per cent, while Arihant Capital Markets, and Angel Broking have gained 85 per cent, and 55 per cent, respectively, so far in 2022. Motilal Oswal Financial Services is the only stock among major broking firms that slipped to a fresh 52-week low last week.

Here's the technical outlook to understand the present and future outlook of brokerage stocks:

Motilal Oswal Financial Services Limited (MOTILALOFS)

Outlook: Negative trend eyes Rs 650 and Rs 630

Formation of a "Lower High, Lower Low" is considered as an unfavourable scenario for any stock. Technically, such formation points to a bearish engulfing scenario, and the same is true for Motilal Oswal Financial Services stock. The stock has also slipped below the 200-weekly moving average (WMA), which further encouraged bears to push the stock price into dip shadow. The stock did hold the same support in June this year , but the pullback rally encountered a bitter sell-off, weakening the 200-WMA. This negative trend now heads in the direction of Rs 650 and Rs 630 levels. CLICK HERE FOR THE CHART

Angel Broking Ltd (ANGELBRKG)

Outlook: Potential upside of 12.5%

The trend for the Angel Broking is highly optimistic as the current formation shows an "Inverse Head and Shoulder" breakout. However, the volume structure lacks momentum. The sentimental support comes around Rs 1,500-mark, and as long as this level is protected, the bullish bias could gain on volume parity. The breakout hints at a rally towards Rs 1,800 in the medium-term. CLICK HERE FOR THE CHART

ICICI Securities Ltd (ISEC)

Outlook: Needs to breakout over Rs 530

While the current chart texture indicates sideways trend, the stock is resolutely building support base in the range of Rs 490 to Rs 480 levels. The stock does have an obstacle near Rs 530, which once gets taken off, would let the stock price to breakout in the direction of Rs 560 and Rs 580. Weekly chart reveals a cushion at Rs 460, its 200-WMA support, that viewed a smart recovery when the stock surpassed it in July 2022. CLICK HERE FOR THE CHART

5Paisa Capital Ltd (5PAISA)

Outlook: 200-WMA acts as a support

Shares of 5 paisa are struggling to leap over the Rs 400 to Rs 375 hurdle range. Nevertheless, the 200-WMA is set at Rs 285, which continues to bolster the lower support base. Thus, until this support is not negated, the stock could technically aim to crush the hurdle range, as per the weekly chart set-up. CLICK HERE FOR THE CHART

Geojit Financial Services Ltd (GEOJITFSL)

Outlook: 200-WMA support to bolster positive bias 

Geojit Financial Services shares are gradually cruising over the 200-WMA support of Rs 44.60 mark. The breakout exists at Rs 55, where the stock witnessed massive sell-off last month. Whenever this hurdle is overcome, the positive bias could reach Rs 65 levels. CLICK HERE FOR THE CHART