IDFC, MGL, Radico: 5 smallcaps to bet on amid current market volatility

Shares of IDFC, MGL, Radico Khaitan, KEI Industries and Carborundum Universal may rise up to 26 per cent, indicate technical charts

Domestic benchmark indices, the BSE Sensex and Nifty 50 are yet to conquer their crucial moving averages, especially the 50-day moving average (DMA), which they failed to surpass since the beginning of this year.

While the recent reversal has painted a favourable scenario where the indices may succeed in overcoming major moving averages, the bullish trend will be confirmed only critical averages are left behind. 

Meanwhile, there are few stocks in small cap segment that are developing chart structures aim at reaching higher highs , without taking support from the broader market trend.  

This infrastructure development finance company, IDFC is all set to hit new historic peak after nearly 14 years. The previous all-time high of Rs 82.25 was recorded in 2008.

Small cap stocks like KEI Industries and Carborundum Universal continues to hit new historic peaks, despite overall broader market staying irrational.

Here’s the technical outlook for selective small-cap stocks flashing resilient bullish signals:-

IDFC Limited (IDFC)

Likely target: Rs 100

Upside potential: 26%

Shares of IDFC are rising with “Higher High, Higher Low” formation, as per the daily and weekly chart. The medium-term trend is bullish until the support of Rs 73-mark is protected, its 100-day moving average (DMA).

The current trend exhibits a positive rally in the direction of Rs 100-mark. The Moving Average Convergence Divergence (MACD) has made a positive crossover rising above the zero line, suggesting the momentum is expected to reside for coming sessions. CLICK HERE FOR THE CHART

Radico Khaitan Limited (RADICO)

Likely target: Rs 1,330

Upside potential: 11%
 

Stability over the horizontal resistance of Rs 1,150 level has triggered a positive bias for the shares of Radico Khaitan. Moreover, the support rendered by MACD making a positive crossover has strengthened the upside bias, as per the weekly chart. 

The counter is on track to record a new historic peak of Rs 1,300 levels. The immediate support for the stock exists at Rs 1,140 and Rs 1,090 levels, as per the daily chart. CLICK HERE FOR THE CHART

KEI Industries Ltd (KEI)

Likely target: Rs 2,000

Upside potential: 17%

Since mid-2021, the shares of KEI Industries have risen gradually, following a “Rising Channel” pattern. This trend is intact until stock breaks Rs 1,400-level on closing basis, as per the weekly chart. 

The immediate support exists at Rs 1,500 level, which has bolstered recent weaknesses. A move over Rs 1,700-mark could spark a rally towards Rs 2,000 levels. CLICK HERE FOR THE CHART

Mahanagar Gas Ltd (MGL)

Likely target: Rs 1,200

Upside potential: 22%

After conquering the major hurdle of Rs 940, the stock went to hit a new 52-week high. This move has pushed bulls into a fresh breakout, leading stock to rally higher in coming sessions. Thus, until the counter holds Rs 940, the positive momentum shall drive to Rs 1,200 level. 

There is “Ascending Triangle” breakout on the weekly chart of Mahanagar Gas, with volumes showing strong interest. The breakout shows a positive bias for the medium-term perspective.  CLICK HERE FOR THE CHART

Carborundum Universal Ltd (CARBORUNIV)

Likely target: Rs 1,250

Upside potential: 19%

Hitting a new historic peak, in a scenario where broader market is trending sluggish and non-directional indicates a robust underlying momentum, as is the case with Carborundum Universal shares. 

While the present immediate structure represents sideways trend in the range of Rs 1,025 to Rs 950, a positive move over Rs ,1030 shall trigger sharp up move in the direction of Rs 1,250-mark. CLICK HERE FOR THE CHART