Cyient DLM, Sansera, AMI Organics: 5 microcap stocks that you MUST buy

Technical charts suggest that microcap stocks such as Cyient DLM, Sansera Engineering, AMI Organics, Aarti Pharmalabs and Medplus Health Services can potentially rally up to 23% from present levels.

Equity benchmark indices have been in a downtrend after registering record highs in late September 2024. The BSE Sensex and the NSE Nifty 50 registered life-time highs on September 27, 2024 at 85,978 and 26,277, respectively. Post which in the last five months the benchmark indices have declined around 12 per cent each from their respective highs.  Amid the downturn, the broader market has taken a sharper hit. The Nifty Smallcap 250 and the Nifty Microcap 250 have declined over 20 per cent each in the same period. Among individual stocks, nearly 60 per cent of the Microcap stocks have underperformed the Microcap index by logging a wider loss compared to the benchmark.  According to data from ACE Equity, 10 out of the Nifty Microcap 250 index have declined over 50 per cent in this period. Jai Corp down 70 per cent is the biggest loser followed by the likes of Senco Gold, Strides Pharma Science, Voltamp Transformers, Electrosteel Castings, Prince Pipes, TARC, Dish TV, Allcargo Logistics and Spandana Sphoorty Financial. That apart, another 18 stocks plunged more than 40 per cent each.  On the positive front, 4 microcap stocks have surged more than 50 per cent during this market turmoil, while another 6 have gained in the range of 20 - 40 per cent. These stocks were Greaves Cotton, CarTrade Technologies, Blue Jet Health, Ganesh Housing, Wochkardt, Aarti Pharmalabs, AMI Organics, Dhani Services, PG Electroplast and Dishman Carbogen.    Against this background, here are 5 microcap stocks that can be potential winners going ahead.  Cyient DLM  Current Price: Rs 414  Upside Potential: 18.4%  Support: Rs 403  Resistance: Rs 415; Rs 455; Rs 470  Cyient DLM has shed almost 40 per cent since the start of the calendar year high, and trades near about 55 per cent lower when compared to its all-time high of Rs 884 registered in February 2024. At present, the stock is seen trading in an extremely oversold zone, with positive divergence on the daily RSI (Relative Strength Index); hence the stock may witness a relief rally in the near-term. CLICK HERE FOR THE CHART  As such, the recent low of Rs 403 becomes the key support for the stock. On the upside, the stock needs to break and trade consistently above Rs 415 levels, for a likely pullback towards Rs 490 levels. Interim resistance for the stock can be expected around Rs 455 and Rs 470 levels.    Aarti Pharmalabs  Current Price: Rs 802  Upside Potential: 19.7%  Support: Rs 770; Rs 750  Resistance: Rs 855; Rs 895; Rs 937  Aarti Pharmalabs stock has surged over 41 per cent in February alone, and shall give a breakout on the monthly scale in case the stock closes above Rs 770. For now, the overall bias for the stock is expected to remain upbeat as long as the stock holds above Rs 750. On the upside, the stock can potentially extend the up move towards Rs 960 levels, with interim resistance likely around Rs 855, Rs 895 and Rs 937 levels. CLICK HERE FOR THE CHART  AMI Organics  Current Price: Rs 2,236  Upside Potential: 23%  Support: Rs 2,190; Rs 2,062  Resistance: Rs 2,255; Rs 2,420; Rs 2,540; Rs 2,645  AMI Organics is seen consistently making higher-highs and higher-lows on the weekly scale since June 2024. In case of a dip, the stock has been finding support around its 20-WMA (Weekly Moving Average). The stock once again is seen testing the 20-WMA support, which now stands at Rs 2,062. As long as this support and the trend is protected, the stock can bounce back to register new highs around Rs 2,750 levels.  Near support for the stock exists at Rs 2,190; whereas interim resistance for the stock can be anticipated around Rs 2,255, Rs 2,420 and Rs 2,540 and Rs 2,645 levels. CLICK HERE FOR THE CHART    Sansera Engineering  Current Price: Rs 1,231  Upside Potential: 12.9%  Support: Rs 1,160; Rs 1,117  Resistance: Rs 1,300; Rs 1,335  Sansera Engineering recently tested support at its 100-WMA (Weekly Moving Average), which stands at Rs 1,117, and then bounced back. The daily chart shows presence of near support for the stock at Rs 1,160. As such, the near-term bias for the stock is likely to be positive as long as the stock holds above this support zone. CLICK HERE FOR THE CHART  That apart, the stock is seen crossing its 20-DMA, which stands at Rs 1,220; alongside a positive divergence in key movement oscillators on the daily scale. On the upside, the stock can potentially bounce back to Rs 1,390 levels; with interim resistance seen at Rs 1,300 and Rs 1,335 levels.  Medplus Health Services  Current Price: Rs 765  Upside Potential: 15.7%  Support: Rs 711; Rs 700  Resistance: Rs 790; Rs 809; Rs 830  Medplus Health stock is seen testing support around its super trend line on the weekly scale at Rs 711; below which near support for the stock exists at Rs 700. As long as the support zone is respected the stock may attempt to trade with a favourable bias. On the upside, the stock can potentially rally to Rs 885; with interim hurdles at Rs 790, Rs 809 and Rs 830 levels. CLICK HERE FOR THE CHART