Suzlon, Mazagon Dock: 75% of Nifty SmallCap stocks trade firm above 200-DMA

Overall trend - the Nifty Small cap index continues to remain highly robust, with an intend to reach a new historic high.

Nifty small cap index has hit new 52-week peak, gaining over 16 per cent so far in the current year, outperforming benchmark indices, the BSE Sensex and Nifty 50, which soared 9 per cent, respectively. 

Three-quarters of its constituents are trading over the 200-day moving average (DMA), which serves as a barometer while assessing optimistic stocks.  More important, merely 15 stocks are trading in the overbought category of the Relative Strength Index (RSI), an indicator that measures the strength of stocks on a scale of 0-100 values.

Well renowned shares like TV18 Broadcast, Suzlon Energy, Rail Vikas Nigam , PNB Housing Finance, National Aluminium Co., Mahanagar Gas, KPIT Technologies. Intellect Design Arena, IDFC, IDBI Bank, Cyient, etc are holding firmly above their respective 200-DMAs.

Mazagoan Dock Shipbuilders shares’s have doubled advancing over 110 per cent so far in the current, while Rail Vikas Nigam, Glenmark Pharmaceuticals and Cyient have surged close to 80 per cent. 

There are all-together ten stocks that have surged over 50 per cent this year alone, while another 26 stock have gained between 50 per cent to 25 per cent. 

Overbought stocks include UTI Asset Management Company, RBL Bank, Raymond, Mazagoan Dock Shipbuilders, Kalyan Jewellers India, Glenmark Pharmaceuticals, Cochin Shipyard,etc.

Technically, the overall trend in the Nifty Small cap index continues to remain highly robust, with an intend to reach a new historic high. The present all-time high is at 12,047-mark. The index is foreseeing a gradual upside, as per the technical formations on the daily and weekly chart. 

The current breakthrough over 11,000-level has spurred new upside in the index, with an immediate climb towards 11,700 unlikely to be overlooked.

While stocks like Granules India, Deepak Fertilisers & Petrochemicals Corp., IRB Infrastructure Developers, India Cements, KRBL, HFCL, and Balaji Amines that trades beneath the 200-DMA, technical charts may soon review their underlying strength and momentum.
 

source: spidersoftwareindia