Buy these mid, smallcap stocks for at least 20% returns in 2022

Laurus Labs Ltd, Endurance Technologies Ltd may surge over 30 per cent whereas small cap stocks like Avanti Feeds Ltd, BASF India and Rain Industries could jump up to 40 per cent from current levels

There are various price and technical parameters that one can opt to analyze stocks for better gains. This may include price parameters such as candlestick formations, patterns or Bollinger Band, moving average, Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Stochastic and any more falls as per the technical study.

One of the best strategies is to combine more than one instruments to achieve better and higher results. That’s said, the prime importance is assigned to moving averages that assists to a greater extent. Herein, 50-days moving average (DMA), 100-DMA and 200-DMA are very well studied to analyse any stock.

The moving average helps to smooth out the data for a specific period, so to understand the strength and the overall direction. It is an arithmetic mean derived from a set of stock prices over the specific number of days. Here, 200-DMA is considered as the most relevant instrument to gauge the bigger trend. Any stock crossing or rising above 200-DMA is considered as the one who is shifting gears for the next bullish rally and vice versa.

In the current market situation, there are few mid and small cap stocks reflecting an overwhelming response to 200-DMA. Such structures hint at a robust rally in one direction. The trend is likely to see higher interest of market participants, usually when the breakout emerges. 

Mid cap stock like Laurus Labs Ltd, Endurance Technologies Ltd may surge over 30 per cent whereas small cap stocks like Avanti Feeds Ltd, BASF India Ltd and Rain Industries could jump up to 40 per cent from current levels.

Here is the list of stocks indicating at least 20 per cent upside from current levels:-

Mid small caps
Source: spidersoftware