Raymond, Bombay Dyeing: 5 mid-, smallcap stocks that can rally up to 25%

The calendar year of 2021 has so far belonged to the mid- and small-cap stocks that are seeing a massive outperformance over their large-cap peers. On a year-to-date (YTD) basis, the S&P BSE MidCap index and S&P BSE Small Cap index have surged 28 per cent and 39 per cent, respectively, as compared to around 10 per cent rise in the S&P BSE Sensex.

The overall sentiment towards broader market stocks has been favourable with the small-cap index closing in the green for four consecutive months.

That said, analysts are now voicing concerns over the massive rally in small ticket-size stocks as the frenzied buying, especilly by retail investors, is leading to questionable valuations.

Here's how to trade some of the buzzing names:

Arvind Limited (ARVIND)

Likely target: Rs 100 and Rs 110

Upside potential: 16% and 25%

The stock has managed to cross the 200-weekly moving average (WMA), indicating a positive bias. This up move may see a further breakout towards Rs 100 and Rs 110, which are the next hurdle levels. That said, volumes have remained subdue. Thus, if we see any growth in volume going forward, then the price action may see accelerate. The immediate support is at Rs 75-mark. CLICK HERE FOR THE CHART
 
Bombay Dyeing and Manufacturing Company (BOMDYING)

Likely target: Rs 110 and Rs 117

Upside potential: 12% and 20%

As per the weekly chart, the stock has crossed the hurdle range of Rs 97 – Rs 96, reflecting an upward sentiment for the upcoming sessions. The volumes have seen phenomenal rise on any upmove, suggesting positive interest of market players. The Moving Average Convergence Divergence (MACD) has conquered the zero line, implying that the trend will remain in the upward direction with a support of Rs 80 and Rs 87 levels. The overall trend is heading towards Rs 110 and Rs 117 levels. CLICK HERE FOR THE CHART

Raymond Limited (RAYMOND)
 
Likely target: Rs 450 and Rs 470

Upside potential: 6% and 11%

The successful crossing of 100-WMA has built a positive bias for the stock. Going forward, sustenance above this level may assists Raymond in moving towards Rs 450 and Rs 470 levels, which are the next obstacles. The MACD has sustained above the zero line, indicating underlying bullish momentum. The closing basis support comes at Rs 400-mark. CLICK HERE FOR THE CHART
 
S H Kelkar and Company Limited (SHK)
 
Likely target: Rs 190 and Rs 200

Upside potential: 11% and 17%

The stock has managed to cross the 200-WMA, placed at Rs 160 levels, building a positive bias in the stock. This breakout may push the stock towards Rs 190 and Rs 200 levels over the medium-term, weekly chart shows. Moreover, a positive crossover of 100-WMA with 50-WMA further adds to the bullish bias. The immediate closing basis support comes at Rs 160 levels. CLICK HERE FOR THE CHART
 
Vardhman Textiles Limited (VTL)
 
Likely target: Rs 1,520 and Rs 1550

Upside potential: 5.50% and 7%
 
With a "Higher High, Higher Low" formation, the stock is well poised for a stable upside. Going-forward, till the stock does not breach the support of Rs 1,380 levels, the upward momentum in the stock may drive it to Rs 1,520 and Rs 1550 levels. The Relative Strength Index (RSI) has entered in the overbought category, yet the stock is not witnessing any major selling pressure, as per the daily chart. CLICK HERE FOR THE CHART