 "Aster DM, Laurus Labs among 5 smallcap stock ideas in a falling market")
The Indian equity market has been in a downward spiral for nearly a month now. Benchmark equity indices have declined up to 8 per cent from the peaks. The NSE Nifty 50 index on Friday hit a low at 24,227 - down 7.8 per cent from its life-time high of 26,277 hit on September 27.
Similarly, the BSE benchmark index, the Sensex from its summit of 85,978, has plunged 7.4 per cent to a low of 79,646 in intra-day deals today. Meanwhile, the NSE SmallCap 250 index too has declined 7.3 per cent from its peak.
That apart, the benchmark indices at present were seen quoting below the 100-DMA - the medium-term moving average; thus implying a likely subdued trend in the near future.
Amid this background, stock selection becomes imperative. Based on the existing chart patterns, here are 5 smallcap stocks that can potentially help investors ride the market volatility.
Laurus Labs
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Current Price: Rs 459
Upside Potential: 15.5%
Support: Rs 435; Rs 429; Rs 406
Resistance: Rs 480; Rs 505
Laurus Labs has managed to sustain its higher-highs and higher-lows trend on the weekly scale despite the recent market volatility. The medium-term chart shows that the bias at the counter is likely to remain positive as long as the stock holds above Rs 406. CLICK HERE FOR THE CHART
The daily chart shows near support for Laurus Labs stock at Rs 435 and Rs 429 levels. On the upside, the stock may attempt to re-test its recent highs around Rs 530 levels. Interim resistance for the stock can be expected around Rs 480 and Rs 505 levels.
Aster DM
Current Price: Rs 442
Upside Potential: 15.6%
Support: Rs 440; Rs 420; Rs 413
Resistance: Rs 477; Rs 491
Aster DM Healthcare stock is seen attempting a breakout on the daily scale. The bias at the counter is likely to remain upbeat as long as the stock holds above Rs 440. Below which, the stock is expected to find support around Rs 420 and Rs 413 levels. The overall bias for the stock is likely to remain positive as long as the stock holds above Rs 388. CLICK HERE FOR THE CHART
On the upside, the stock can surge to Rs 511, with interim resistance seen at Rs 477 and Rs 491 levels.
Eris Lifesciences
Current Price: Rs 1,258
Upside Potential: 13.3%
Support: Rs 1,245; Rs 1,210
Resistance: Rs 1,335; Rs 1,387
Eris Lifesciences stock is seen testing its super trend line support on the daily scale at Rs 1,245; below which near support for the stock stands in the form of 20-WMA (Weekly Moving Average) at Rs 1,210.
As long as these two support levels are held, the stock may look to bounce back to higher levels in the near-term. As such, a pull-back to Rs 1,425 levels cannot be ruled out. Interim resistance for the stock is seen at Rs 1,335 and Rs 1,387 levels. CLICK HERE FOR THE CHART
BLS International
Current Price: Rs 373
Upside Potential: 18%
Support: Rs 364; Rs 345; Rs 335
Resistance: Rs 421
BLS stock has given a fresh breakout on the daily scale on Thursday. The daily chart suggests that the stock is likely to trade with a positive bias as long as it holds above Rs 334; with interim support seen at Rs 364 and Rs 345 levels.
On the upside, the stock can potentially rally to Rs 440 levels, with interim resistance expected around Rs 421. CLICK HERE FOR THE CHART
Five-Star Business Finance
Current Price: Rs 891
Upside Potential: 15%
Support: Rs 880; Rs 840
Resistance: Rs 940; Rs 972
Five-Star Business stock has been making higher-highs and higher-lows on the daily chart for the last two months. The daily chart shows that the bias for the stock is likely to remain positive as long as the stock holds above its 20-DMA (Daily Moving Average) at Rs 840; with near support for the stock visible at Rs 880. CLICK HERE FOR THE CHART
The long-term chart shows that sustained trade above Rs 900-mark, can lead the rally to newer heights, with levels of Rs 1,025 likely. Interim resistance for the stock can be expected around Rs 940 and Rs 972 levels.