After up to 44% rally, charts hint more upside in these mid, smallcap stks

Among individual stocks, Union Bank of India has soared 44% so far in November. Bank of India, Amara Raja Batteries, Redington and Jindal Stainless have also logged strong gains.

Domestic markets, so far this month, have exhibited choppy trend as the benchmark indices, the BSE Sensex and Nifty 50 continue to struggle near their respective all-time highs. Volatility has been the order of the day, causing anxiety within the trading community over the likely underlying trend. 

India VIX, a volatility indicator that gauges the market volatility, neared the 12-mark on Wednesday, closer to the September low of 9; thus indicating any reversal could foster more volatility.  

Nonetheless, select mid-, small-cap stocks have performed reasonably well since the start of the current month. Some of them have zoomed over 30 per cent. 

Among mid-cap stocks, shares of Union Bank of India and Bank of India have surged 44 per cent and 37 per cent each. 

Likewise, in small-cap segment, Amara Raja Batteries, Jindal Stainless and Redington (India) have soared 27 per cent, 24 per cent and 23 per cent respectively.

Thus far in November, the Nifty Smallcap index has advanced 0.55 per cent, and has outperformed the Nifty Midcap index, which is down 0.65 per cent.

To summarize, even as the frontline indices exhibit uneasiness at higher levels, selective mid- and small-cap stocks have presented some respite to the traders.

Here’s a technical outlook of select mid-, small-cap stocks that have performed well so far in November: -

Amara Raja Batteries Limited (AMARAJABAT)

Likely target: Rs 700 and Rs 750

Upside potential:  8.5 to 15%

While the stock trades 34 per cent lower from its historic peak recorded in January this year, the present chart texture signals a resilient trend. The stock has decisively crossed the 200-day moving average (DMA) set at Rs 526 mark and the current momentum exhibits a “Golden Cross” structure. If the stock rallies over Rs 650 level, the breakout could instil medium-term bullishness, with price action taking a course towards Rs 700 and Rs 750 levels. The immediate support for the stock exists at Rs 620 and Rs 610 levels. CLICK HERE FOR THE CHART

Redington (India) Ltd (REDINGTON)

Likely target: Rs 200

Upside potential: 16%

Redington (India) logged a new all-time of Rs 172.50 a few sessions ago. The stock is making efforts to engulf all the selling pressure emerging near Rs 170-level, which has been a barrier since June this year. 

If the stock succeeds to leap over this hurdle, the breakout would nurture a fresh bullish rally. The stock would then head in the direction of Rs 200-mark. The closing basis cushion for the stock stays at Rs 155 mark. CLICK HERE FOR THE CHART

Jindal Stainless Ltd (JSL)

Likely target: Rs200

Upside potential:   12%

Shares of Jindal Stainless Steel continue to witness a robust buying momentum in the overbought category of the Relative Strength Index (RSI). The last time it did see such sentiment, the stock rallied 25 per cent in successive months. Now, with the immediate support at Rs 165 and Rs 155, where the stock witnessed accumulation lately, a positive rally back to Rs 200 seems possible, shows the daily chart. CLICK HERE FOR THE CHART

Bank of India (BoI)

Likely target: Rs 100

Upside potential:  21%

Bank of India has gained 37 per cent so far in November, thus registering its highest monthly gains in recent years. The trend is robust, with volumes accompanying the bullish sentiment. Now, as long as the stock protects the immediate support of Rs 70, which has bolstered the up move, the trend is likely to march forward with firm resilience. The stock can hit Rs 100 in short-term, as per the charts.  CLICK HERE FOR THE CHART

Union Bank of India (UNIONBANK)

Likely target: Rs 95

Upside potential:  11%

Union Bank of India shares are headed towards Rs 95 mark, which was the hurdle seen in 2019. If this level gets crossed, next breakout could see medium-term bullishness. In that case, the stock may see Rs 125 and could even rally further. The current trend is diligent, as the momentum indicator, the Moving Average Convergence Divergence (MACD) has crossed the zero line post 2017, shows the monthly chart. CLICK HERE FOR THE CHART