Amber, FSL, Balaji Amines: 5 smallcap stocks that can fall up to 14%

Despite the recent downturn, the broader trend for the Nifty SmallCap index is likely to remain positive as long as the index holds above the 12,050-level.

The Nifty SmallCap index logged its biggest single-day loss in the last nine months on Tuesday amid aggressive profit-taking across-the-board. On Wednesday morning, the index slipped another 0.5 per cent, and thus is now down 5.3 per cent from its new summit at 13,079.

Given the sudden bout of volatility in smallcap stocks, here are five stocks that could potentially decline up to 14 per cent in the upcoming trading sessions.

Nifty SmallCap

Last close: 12,450

Outlook: Index may tests the 20-DMA

Support: 12,235; 12,050

Resistance: 12,850

With the over 5 per cent fall in the last two trading sessions, the Nifty SmallCap index is seen testing support at its 20-DMA (Daily Moving Average) at 12,235-odd levels. Further, the monthly chart suggests that the bias for index is likely to remain upbeat as long as the index sustains above the 12,000-mark.

However, select momentum oscillators on the daily and weekly charts have turned negative. Hence, the index may see some downward pressure in the near-term. In case, the index quotes consistently below the 20-DMA, it could dip towards the 50-DMA which stands at 11,800, or further down towards the lower-end of the anticipated trading band on the daily chart at 11,460.

On the upside, the Nifty SmallCap index is expected to face resistance around 12,850. CLICK HERE FOR THE CHART

Amber Enterprises

Last close: Rs 2,893

Outlook: Likely to face downward pressure

Downside Potential: 11%

Resistance: Rs 2,915

Shares of Amber Enterprises have dropped by 8 per cent in the last two trading sessions so far. Presently, the stock has dipped below its 20-DMA, which stands at Rs 2,915.

The short-term bias is likely to remain tepid as long as the stock remains below Rs 2,915. On the downside, the stock has near support at Rs 2,750, below which a slide towards Rs 2,575 seems very likely. CLICK HERE FOR THE CHART

Balaji Amines

Last close: 2,219

Outlook: 200-DMA remains a key hurdle

Downside Potential: 14%

Resistance: Rs 2,308

Support: Rs 2,105

For the last two weeks, Balaji Amines was seen attempting to cross its 200-DMA (Rs 2,308) after nearly a year. However, despite repeated attempts the stock failed to conquer its long-term moving average, and now has slipped back below its short- and medium-term moving averages too.

The key hope for the stock remains the 200-WMA, which stands at Rs 2,105, a technical level that the stock has firmly honoured since late March 2023.

As long as the support of Rs 2,105 is held, the stock may re-attempt to break above the 200-DMA. On the flip side, failure to hold Rs 2,105, can trigger a fall towards Rs 2,000 or even Rs 1,900. CLICK HERE FOR THE CHART

Firstsource Solutions

Last close: 157.80

Outlook: Downward pressure likely

Downside Potential: 11%

Resistance: Rs 162; Rs 169

Shares of Firstsource Solutions (FSL) dipped below the 20-DMA for the first time in two months. Select momentum oscillators, both, on the daily and weekly charts too have given a negative divergence. 

Hence, the stock is likely to face some downward pressure in the near term. Immediate hurdle for the stock is seen at Rs 162, above which the next resistance stands at Rs 169.

On the downside, the stock may test the lower-end of the anticipated trading band at Rs 148, or even dip further down to Rs 139. CLICK HERE FOR THE CHART

VIP Industries

Last close: 651.60

Outlook: Break of 200-DMA may add downward pressure

Downside Potential: 13%

Resistance: Rs 680

Support: Rs 644; Rs 630

Shares of VIP Industries have witnessed a steep fall of 11.5 per cent in the last four trading sessions. Presently, the stock is testing support at its 200-DMA at Rs 644, which also coincides with its 50-DMA.

Hence, one needs to keep a close eye on this level. As long as the 200-DMA holds on a closing basis, the stock may attempt a pull back.

However, the momentum oscillators in favour of the bears on the daily and weekly chart, the likelihood of a downward breakout seems higher for now.

In case, the stock breaks the support, the down move may accentuate on sustained trade below Rs 630 and the stock could slide to Rs 575. Resistance on the upside is seen at Rs 680. CLICK HERE FOR THE CHART