Tech View: Dalal Street's top wealth creators of 2020 show further upside

The stock of Dixon Technologies has tripled during the current calendar year from the levels of Rs 3,800 to around Rs 12,535

A trinity of low interest rates, flush of liquidity, and cheap valuation drove investors towards equities in the calendar year 2020. While large-cap stocks drove the indices, investors saw a broad-based revivial in the markets with the mid- and small-cap stocks outperforming their large-cap counterparts.

Going forward, analysts believe the calendar year 2021 (CY21) would well turn out to be the year of mid-and small-caps, and expect these two indices on the BSE to hit a fresh high after a gap of nearly two years. Though they caution against the intermittent market correction, the broad trend, they believe, remains up. 

Among the star performers in the broader market, names like Dixon Technologies, Laurus Labs, and Aarti Drugs have leaped between 230 per cent and 395 per cent so far in the calendar year 2020 and stand as the top wealth creators of this year. In comparison, the benchmark S&P BSE Sensex has risen just 11.5 per cent till December 22. So, should you continue to hold these stocks in your portfolio? Here's what charts suggest:

Dixon Technologies (India) Limited (DIXON): The stock has tripled during the current calendar year from the levels of Rs 3,800 to around Rs 12,535. This astonishing move is substantial and advocates further upside. While such meteoric rise may see profit booking, the overall strength and sentiment in the stock remains strong from the medium-term perspective. As long as the electronic manufacturing company's stock defends 10,000-mark, it may see a rally towards Rs 18,000 levels, as per the monthly charts. CLICK HERE FOR THE CHART
 
Aarti Drugs Limited (AARIDRUGS): The extreme bullish trend in the stock has provided over 600-per cent returns in the current year from the low of Rs 140 levels. The stock may witness weakness if it breaches the support of Rs 600 on the closing basis, weekly charts show. On the higher side, a rally towards Rs 1,400 levels seems possible if the stock decisively conquers Rs 900 levels. CLICK HERE FOR THE CHART
 
Alkyl Amines Chemicals Limited (ALKYLAMINE): This stock has given four-fold returns in the calendar year 2020. The stock has formed "Rising channel" or "Higher High, Higher Low" formation on the weekly chart. The uptrend is expected to stay intact till the lower rising trendline is held comfortably or the support of Rs 3,400 levels is surpassed decisively on the weekly chart. The upside bias may see a rally in the direction of Rs 4,700 to Rs 5,000 levels. CLICK HERE FOR THE CHART
 
Laurus Labs Limited (LAURUS LAB): This stock has smartly reversed from the life-time low Rs 57.60, hit in March 2020, to climb Rs 365 levels. A sharp surge of over 500 per cent is supporting the next breakout above the current price of Rs 330 levels, as per the monthly chart. Moreover, the stock is absorbing the selling pressure above Rs 300 levels and, therefore, look set to rally towards Rs 450 and Rs 510 levels. Till the time it manages to sustain Rs 250 levels, the upward bias remains intact. CLICK HERE FOR THE CHART
  
IOL Chemicals and Pharmaceuticals Limited (IOLCP): This stock has seen a sharp rally from Rs 160 levels to a recent high of Rs Rs 893. The move, however, is witnessing profit booking at the current juncture. That said, the underlining sentiment is bullish. The stock may register its next big up move if it breaks above Rs 800 levels. A decisive move above this resistance may trigger a rally towards Rs 1,000 and Rs 1,200 levels. The bullish sentiment is intact till the counter defends Rs 600 levels on the downside, weekly charts suggest. CLICK HERE FOR THE CHART