Affle (India) Ltd: This technology gem rises over 7% amid a market decline

Amidst a period of profit booking and a downward trend in the markets, the technology industry witnessed a remarkable performer, Affle (India) Ltd, which surged more than 7% throughout the week.

Incorporated in 1994, Affle (India) Ltd is a global technology company with a proprietary consumer intelligence platform that transforms ads into recommendations, enabling marketers to effectively identify, engage, acquire, and drive transactions with potential and existing users. The company engages in providing mobile advertisement services and operates through Consumer Platform and Enterprise Platform business segments. The company was founded by Anuj Khanna Sohum, Madan Sanglikar, Viraj Sinh, and Anuj Kumar on August 18, 1994, with its headquarters in Gurgaon, India.

From a technical perspective, Affle (India) Ltd stock has been consolidating within a notable price range, displaying lower highs and equal lows between Rs 1511 and Rs 866.50 levels. A detailed analysis of price movements, connecting highs of mid-January 2022 (Rs 1511 level) and mid-September 2022 (Rs 1363 level) on the weekly chart, reveals a breakout trendline, suggesting the presence of a Bullish up flag pattern on the daily chart. 

Recent consolidation has been further validated by a bullish golden crossover of the 5-13-26 DMA and the 14-day period RSI, which is placed in the bullish zone around the 57 level. Notably, the stock is trading just below the trendline of the mentioned pattern with support from the 5 DMA, and closing above the breakout trendline level (Rs 1170 level) on a weekly basis will confirm the breakout. 

Remarkably, the stock made a high of Rs 1165 level in the current week, demonstrating its strength and sparking optimism among investors. The stock now eyes a potential target of approximately Rs 1400 after the breakout, indicating a promising gain of around 20% from the breakout level. 

Swing traders and short-term investors should closely monitor the stock as it continues to exhibit robust performance, presenting an enticing opportunity for further upside potential.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.