Avoid aggressive mkt positioning, says Angel One; Aequs among 3 stock picks

Disclaimer: This article is written by Osho Krishan, Chief Manager - Technical & Derivative Research, Angel One. Views expressed are his own. Readers' discretion is advised.

 

The Indian equity markets witnessed a corrective week, with persistent selling pressure weighing on the benchmark indices. While the intensity of the decline remained moderate, sustained weakness was evident, particularly across the broader market segments. The Nifty50 index ultimately ended the week on a subdued note, declining 0.83 per cent from the previous week’s close and settling at 24366. The overall market tone remained cautious amid continued selling pressure and lack of conviction at lower zones.

 

 

Following the Doji formation in the previous week, a sense of hesitation became evident, while the persistent sell-off gradually turned the market undertone cautious and skeptical. On the daily chart, the benchmark index has been hovering around its 20 DEMA over the past few sessions, reflecting indecisiveness among market participants.

 

Technically, the index has retraced 38.20 per cent of its recent rally, which also coincides with the breakout neckline of the sloping trendline, suggesting that the current decline remains a healthy retracement. However, a sustained move below the weekly low of 24265 could weaken the technical structure and shift the outlook from cautious to bearish. Such a breakdown may expose the index to key support zones of 24200-24150, aligned with the 50 per cent Fibonacci retracement, as well as the 50 and 100 DEMA for the coming week. 

 

Conversely, a decisive and sustained move above 24500 is likely to reinforce the underlying structure, potentially triggering a bullish reversal and resumption of the primary uptrend, eyeing the 200 DSMA at 24730. Hence, market participants should remain watchful for key developments and potential catalysts that could determine the next directional move, while positioning accordingly.

 

Going ahead, it would be prudent to avoid aggressive positioning until greater clarity emerges on the market trend, while maintaining disciplined risk management. Investors should closely monitor domestic and global developments that could act as key catalysts in shaping the intermediate trend and accordingly adjust their strategies as market conditions evolve.

 

Stocks to Buy Today, August 17 - Recommendations by Osho Krishan, Angel One 

1. NSE Scrip – AEQUS

View - Bullish

Last Close – ₹249 

Aequs

 

AEQUS has been into a secular uptrend, hovering above its 20-day EMA following a recent retracement phase. The stock has been into a cycle of higher highs and higher lows since inception and has staggered strong movement. Furthermore, the SuperTrend along with all major indicators are strongly aligned with the primary trend, adding bullish quotient and suggesting a potential for a continued northward journey.

 

Hence, we recommend to BUY AEQUS around ₹240 | SL: ₹215 | TGT: ₹285-290

 

2. NSE Scrip – ASAHIINDIA

View - Bullish

Last Close – ₹939 

Asahi India Glass

 

ASAHIINDIA has witnessed a strong momentum in the recent sessions from the cluster of its EMA and has surged above its 200 DSMA, indicating a strong nearby support base. The stock appears to be forming a potential bullish reversal continuation pattern and has surged above the 50% Fibonacci retracement of the longer correction zone. Furthermore, a positive crossover in the 14 day RSI, followed by supportive volume indicate a favourable outlook and strengthening bullish momentum.

 

Hence, we recommend to BUY ASAHIINDIA around ₹930 | SL: ₹869 | TGT: ₹1020-1050

 

3. NSE Scrip – DYNAMATECH

View - Bullish

Last Close – ₹5011 

Dynamatic Technologies

 

DYNAMATECH has witnessed some buying traction from the cluster of EMAs, and rebounded above 20, 50 and 100 with supportive volumes. The stock has soared above the sloping trendline, suggesting a potential revival from the ongoing consolidation phase after an elongated period of time. Momentum indicators remain aligned with price action, reinforcing the positive bias and suggesting potential for further near-term upside.

 

Hence, we recommend to BUY HDYNAMATECH around ₹11100-11000 | SL: ₹10300 | TGT: ₹12000-12200