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Last Updated : Mar 22, 2019 02:28 PM IST | Source: Moneycontrol.com

On the charts | Why you should deploy 'buy on dips' strategy for Aegis Logistics

Based on technical chart patterns, investors can look at buying the stock at current levels with a target of Rs 235-260 in the next 3-6 months with a stop loss of Rs 187.

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Aegis Logistics, which has been under pressure in 2019, could be a good stock to buy on dips if you are investing with a time horizon of 3-6 months, HDFC Securities said in a note.

Based on technical chart patterns, investors can look at buying the stock at current levels with a target of Rs 235-260 in the next 3-6 months with a stop loss of Rs 187, the domestic brokerage firm said in a note.

The stock has shown a positive bias for the short term. The “weekly chart” of “Aegis Logistics” shows bullish evidence as per Japanese Candle Stick, Western Technicals and Elliot Wave Perspective.

A few weeks back, the price has validated bullish reversal candle pattern (Engulfing Bull) i.e. a move above candles’ high of Rs 198 which is a confirmation of a bullish reversal formation.

“At the same time, short trend line breakout has been witnessed on weekly chart which is a bullish development. Now price is in a throwback fall which is a “buy on dips” opportunity,” HDFC Securities note highlighted.

In addition, RSI oscillator is placed with a strong positive divergence on the weekly chart. Double bottom has been formed on a weekly chart.

Aegis Logistics

The stock has bottomed out (for the short term) at 170 which is the end of major falling leg and price has reversed from the lows and shows strong positive momentum from the bottom.

Wave-wise, major “wave c” has ended at the low of 170 and from there the stock has begun anew five/three wave rise. (Fresh rally/ upward retracement)which could initially head towards 235 and 260 levels (the levels are slightly below 100% & 138.2% projection of last two legs).

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Mar 22, 2019 02:28 pm
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