These 2 midcap, 3 smallcap stocks trade in overbought zone; strategy here

Despite trading in overbought territory Delhivery, Metropolis Health look poised for up to 19% further gains, while Usha Martin stock could dip 9%; suggest technical charts.

Technical charts show that select shares across the market are currently trading in an overbought zone following the sharp rally from the April-month lows.  In technical terms, stocks with a 14-day Relative Strength Index (RSI) reading in excess of 70 are considered overbought stocks. The RSI is a momentum indicator that analysis the magnitude of recent price changes in a particular stock. The RSI is measured on a scale of 0 - 100, a reading above 70 is considered overbought, while a reading below 30 is considered as oversold.  In general, stocks trading in an overbought zone tend to be prone to profit-taking or price corrections. Having said that, other key momentum oscillators and technical factors also weigh on determining the stock movement.  Here's a trading strategy in select midcap and smallcap stocks namely - Amber Enterprises India, Bayer CropScience, Delhivery, Metropolis Healthcare and Usha Martin - that are trading in overbought territory as of Wednesday.  ALSO READ | Penny stock up 25% this July; chart hints at further 50% upside potential 

Amber Enterprises India

Current Price: ₹7,538  Likely Target: ₹8,070  Upside Potential: 7.1%  Downside Risk: 8.5%  Support: ₹7,375; ₹7,050  This smallcap stock is seen trading on a positive note for the seventh straight trading session. The price-to-moving averages action looks favourable for Amber Enterprises, with the weekly chart indicating a likely upside target around ₹8,070 levels in the near-term. For further gains, the stock will need to break and trade consistently above the same.  On the flip side, in case of a downturn, the stock could drop back towards its 20-Day Moving Average (20-DMA) which quotes around ₹6,900 levels, with near support anticipated around ₹7,375 and ₹7,050 levels. 

 

 

Bayer CropScience

Current Price: ₹6,482  Likely Target: ₹7,000  Upside Potential: 8%  Downside Risk: 3.9%  Support: ₹6,230; ₹6,070; ₹5,950  Resistance: ₹6,700; ₹6,850  Bayer CropScience is seen consolidating following the recent gains. The near-term bias for the stock is likely to remain favourable as long as the stock holds above ₹6,230 levels. Below which, the stock can potentially correct towards ₹5,950 levels, with interim support likely around ₹6,070.  Technical chart suggests that this midcap stock can potentially extend the rally and test levels of around ₹7,000-mark on the upside. Intermediate resistance can be seen around ₹6,700 and ₹6,850 levels. 

 

 

Delhivery

Current Price: ₹420  Likely Target: ₹500  Upside Potential: 19.1%  Support: ₹383  Resistance: ₹450  At present levels, Delhivery stock is seen testing the key long-term hurdle around ₹422 on the monthly scale. This is the monthly super trend; the smallcap stock has been trading below the same since February 2025.  ALSO READ | Glenmark, Laurus Lab: Will Trump's 200% tariff threat derail pharma stocks?  Further, the stock has recently conquered its 100-Week Moving Average (100-WMA), which now stands at ₹383 levels. This is now likely to act as a key bullish pivot for the stock going ahead. Key momentum oscillators are also in favour of the stock, thus suggesting a potential upside breakout in the near-term.  Breakout above the long-term monthly hurdle can potentially trigger a rally towards the ₹500-mark, with interim resistance seen at ₹450 levels. 

 

 

Metropolis Healthcare

Current Price: ₹1,957  Likely Target: ₹2,280  Upside Potential: 16.5%  Support: ₹1,883; ₹1,868  Resistance: ₹2,080; ₹2,170  Smallcap stock Metropolis Healthcare is seen trading above its 200-DMA for the first time since January 9, 2025. Amid the sharp rally today, the stock is also seen attempting a breakout on the weekly scale. A weekly close above ₹1,883 shall confirm the same; meanwhile, the 200-DMA stands at ₹1,868.  Sustained trade above these levels can potentially help the stock extend its rally towards ₹2,280 levels. Intermediate resistance for the stock can be anticipated around ₹2,080 and ₹2,170 levels, shows the long-term chart. 

 

 

Usha Martin

Current Price: ₹369  Likely Target: ₹336  Downside Risk: 9%  Support: ₹362; ₹347  Resistance: ₹371; ₹377  Usha Martin stock is seen attempting a breakout on the weekly scale for the second straight week. The stock needs to register a weekly close above ₹371 for a confirmed breakout. That apart, amid the recent consolidation select momentum oscillators are showing signs of tiredness for this midcap stock.  As such, the stock may correct and seek support around its 200-DMA, which stands at ₹347; below which a dip towards ₹336 seems likely. Near support for Usha Martin stock exists at ₹362, while the recent high around ₹377 is likely to act as a key hurdle for now. 

Usha Martin