Azad Engineering Share Price Prediction: A Good Time to Buy Ahead of Fed Decision

Summary:
• Azad engineering share price is down by 8 percent in the last month, and the recent upturn in market sentiment makes this a good entry point.

Azad Engineering share price returned to the upside on Tuesday, shaping a two-session losing streak. The Indian aerospace equipment manufacturer had its share price up by 1.6 percent and traded at Rs 1,535 at the time of writing. Nonetheless, it has had a torrid run in the last month, with losses during that period amounting to 8 percent.

However, Azad Engineering (NSE: AZAD) stands in profit this year, with its YTD gains at 120.3 percent as of this writing. Listed at the NSE in December 2023, Azad’s healthy order book has seen it register bullish momentum, and Investec began covering its stock last week. Investec, a leading international brokerage firm, placed a “buy” rating on AZAD, with a target price of Rs 1,850. That means there could be an upside of as high as 20 percent on the share price for the remainder of the year.

Investor confidence has returned to Indian markets this week, with Foreign Institutional Investors (FII) becoming net buyers on Monday and the Nifty 50 index returning to the upside, boosted by focus on next week’s Fed interest rate decision. The Fed will announce its interest rate decision on September 18, and many investors are counting on the move to avert recession fears. According to the CME FedWatch tool, 73 percent of traders have priced in a 25 basis points cut, up from 70 percent on Monday.

Azad Engineering share price prediction

The Moving Average Convergence Divergence (MACD) indicator on the 30-minute Azad Engineering share price chart signalsa control by the buyers above 1,532.00. With the buyers in control, the upside will likely continue and could encounter the first resistance at 1,542.80. If they strengthen their momentum, it could result in a break above that barier to test 1,555.50.

Conversely, moving below 1,532.00 will favour the sellers to take control, with the first support likely to be at 1,520.75. However, extended bearishness could result in a breach of the first support, invalidating the upside narrative and potentially taking AZAD lower to test 1,500.