PNB, BHEL, IDFC among top mid-, smallcap stocks that can rally up to 25%

Technically, whenever any stock remains unaffected during times of volatility, the trend indicates something positive underneath. Such stocks are preferred by market participants for trading gains.

With volatility rising drastically in the Indian stock market, identifying the right stock for investment has become all the more difficult. In the past two months alone, the key benchmark indices - BSE Sensex and Nifty 50 have swung in a range of 8 per cent each. 

The BSE Sensex witnessed a fluctuation of 4,500 points, whereas the Nifty 50 has moved around 1,600 points. Among other broader indices, the NSE Midcap and Smallcap indices have swung around 2,700 points and 1,500 points, respectively. 

In spite of elevated volatility, select midcap and smallcap stocks reflected resilience and continued to rally further. For instance, shares of IDFC and Union Bank of India registered fresh 52-week highs, with stock price surging 40 per cent and 22 per cent respectively, in the past two months. 

Punjab National Bank, Bank of Maharashtra, and Bharat Heavy Electricals (BHEL) were few of the other individual stocks that held strong ground despite in unpredictable times, and were almost 5 per cent shy from hitting new 52-week peaks'. 

Technically, whenever any stock remains unaffected during times of volatility, the trend indicates something positive underneath. Such stocks are keenly hunted by market participants to get an edge in trading.

Here’s the technical outlook on these select mid- and smallcap stocks for the upcoming trading sessions:-

Punjab National Bank (PNB)

Likely target: Rs 51

Upside potential: 20%

Shares of PNB have gained 19 per cent since the start of October with volumes spiking up gradually. The stock absorbed all the sell-off bombarded in the overbought category of the Relative Strength Index (RSI) in September this year and has moved further higher. The stock held the support of the 200-day moving average (DMA) existing at Rs 34.50 during the recent bear attack. The present momentum hints at a rally towards Rs 51-level. Now, the immediate support comes at Rs 40 level. CLICK HERE FOR THE CHART

Bank of Maharashtra (MAHABANK)

Likely target: Rs 25.50

Upside potential: 20%

The opening of Bollinger Bands suggests a breakout scenario for Bank of Maharashtra shares on the daily chart. This move is supported by rising volumes with price closing higher on subsequent sessions. The chart texture is diligent with stock resuming an upward rally. The next reach could be Rs 25.50, which is the next impending hurdle. Support cushion for the stock exists at Rs 19. CLICK HERE FOR THE CHART

IDFC Limited (IDFC)

Likely target: Rs 95 to Rs 100

Upside potential: 25%

Whenever a stock crosses a major hurdle on a bigger timeframe, technically the stock has embarked on a new trend and so is the case with IDFC shares. The weekly trendline resistance at Rs 75 was leaped over with robust volumes, showing resilience to any declines. The underlying strength reflects a bullish bias to Rs 95 to Rs 100 levels. The medium-term outlook has a cushion at Rs 72 and Rs 67 levels.  CLICK HERE FOR THE CHART

Union Bank of India (UNIONBANK)

Likely target: Rs 46 and Rs 42

Upside potential: 25%

Union Bank shares topped Rs 51.90 mark on Tuesday, which was a key hurdle that led the stock price to tumble since December 2021. This move led stock to conquer the 200-weekly moving average (WMA) convincingly. The stock used to trade beneath this moving average since late 2017. In addition, there is a breakout of a “Golden Cross” on the daily chart, signaling a positive move to Rs 65 level. Immediate support exists at Rs 46 and Rs 42 levels. CLICK HERE FOR THE CHART

Bharat Heavy Electricals Ltd (BHEL)

Likely target: Rs 85

Upside potential: 20%

Shares of Bharat Heavy Electricals have negated the “Double Top” breakdown, shows the weekly chart. In the process of doing so, the stock evolved with an “Inverse Head and Shoulder” pattern that bolstered the support base at Rs 60 and Rs 55. The counter now heads in the upward direction to surpass the 52-week high of Rs 74.05. Overall, the bullish bias points to Rs 85 level. CLICK HERE FOR THE CHART