While we saw minor correction on the benchmark indices on Wednesday due to smart recovery from day's low, it was the broader markets both small and mid-cap that ended with decent gains. Nifty Mid-cap 100 on February 10, 2021 ended with gains of 0.79 percent, while Nifty small cap 100 also saw similar gains of 0.74 percent.
The current trend on the indices is believed to be "a healthy pause after the budget up move and it's more of a time-wise consolidation so far. We suggest keeping a close watch on the banking index for cues on the further directional move in Nifty," in the views of Ajit Mishra, VP - Research, Religare Broking Ltd.
"Buying on dips" should be continued with as experts hold a bullish bias
And now as the outlook is bullish for the stocks and experts advise continuing with 'buying on dips' approach here are suggested some mid and small cap stocks which you can buy at current levels for building a good fortune :
Going by the past week, when there was monumental over 9% surge on the benchmark indices with gains of as much as 1300 pts and 4446 points on the Nifty and Sensex, respectively, broader markets didn't replicated the gains of similar extent showed the data by Ace Equity. According to it, Nifty Midcap during the week under review i.e. for the week ended February 5, 2021 posted gains of over 7% while Nifty Small cap rallied over 6 percent.
Stock-specific approach can be adopted as major events behind us
Now as the budget fuelled rally seems to have hit a pause or there is seen some consolidation in the markets, investors are going by stock-specific approach for reaping maximum gains. And for this technical indicators such as RSI or Relative Strength Index comes in handy which details stocks as per their overbought and oversold condition. And now as there is a strong upward trajectory seen in the markets, RSI can also be used for picking up scrips that have managed to conquer selling pressure despite the overbought scenario.
And this scenario presents a good entry point in a new bullish zone, which if sustained, may help establish bullish sentiment from a medium term outlook and may see an upward lift of as much as 25 percent in the near future.
Amid this, with volumes depicting strong momentum, a good number of small caps are seen to enter the aggressive overbought situation in comparison to mid-caps. And with stock prices reflecting strength they may quickly resist any weakness and may show strength despite the strong selling pressure.
30 Mid and Small Caps show strong bullish signals that you can bet at current levels:
20 Stocks From Nifty Small Cap 100
- Aegis Logistics
- Affle (India) Ltd
- Bajaj Electricals
- Birla Corporation
- Century Plyboards
- Dilip Buildcon
- Dixon Technologies
- Equitas Holdings
- Graphite India
- Heidelberg Cement India
- Indian Energy Exchange Limited
- Indiamart Intermesh
- Indian Bank
- Kajaria Ceramics
- Kalpataru Power Transmission
- Karur Vysya Bank
- KEC International
- Persistent Systems
10 Stocks From Nifty Mid-cap 100
- Adani Enterprises
- Apollo Tyres
- AU Small Finance Bank
- Canara Bank
- Cummins India
- Gujarat Gas
- TVS Motor