GNFC, ITI, ACE among 8 smallcap stocks testing long-term averages on charts
Source: Business Standard
Equity markets seemed to have entered a phase of consolidation, with benchmark indices taking a break from scaling record highs in recent trading sessions. The BSE Sensex and the NSE Nifty 50 have declined over 1 per cent each from their respective all-time highs and were seen testing support around their short-term moving averages on the technical charts.
Similarly, the NSE SmallCap 250 index has declined nearly 2 per cent from its peak of 18,627 hit on September 06; and is seen quoting above its 20-DMA (Daily Moving Average) – the short-term moving average.
Here are the 8 stocks that are currently testing this all-important support. Which of these stocks can pullback and which ones look weaker? Here’s what the charts foretell:
GNFC
Current Price: Rs 674
Upside Potential: 14.8%
Support: Rs 673; Rs 660; Rs 621
Resistance: Rs 695; Rs 704; Rs 734
For now, GNFC chart suggests presence of multiple supports in the range of Rs 673 – Rs 660; with immediate resistance seen at Rs 695. The stock will need to breakout from this congestion zone for a clear trend to emerge. The longer-term chart suggests a likely trading range of Rs 621 – Rs 774 for the GNFC stock; with interim resistance at Rs 704 and Rs 734.
Mastek
Current Price: Rs 2,723
Downside Risk: 13.5%
Support: 2,713; Rs 2,664
Resistance: Rs 2,824; Rs 2,860
However, key momentum oscillators seem to be unfavourably placed on the weekly scale. Hence, the stock may face some downward pressure in the near-term. Break and sustained trade below Rs 2,664 (20-WMA) level can trigger a slide towards Rs 2,356. In case of a pull, the shorter-term moving averages at Rs 2,825 and Rs 2,860 are likely to act as resistances.
ITI
Current Price: Rs 296
Upside Potential: 8.1%
Support: Rs 280
Resistance: Rs 309
In the medium-term, the stock is likely to trade in the RS 280 – Rs 320 trading range. A breakout in either direction could determine the next trend.
Action Construction Equipment (ACE)
Current Price: Rs 1,246
Downside Risk: 16.5%
Support: Rs 1,240; Rs 1,184
Resistance: Rs 1,352; Rs 1,400
In case, the stock breaks the 200-DMA, next support for the stock is placed at Rs 1,184 – its 20-WMA – a key moving average the stock has now violated since August 2022. Break and sustained trade of the same can trigger a sell-off towards Rs 1,040 levels. In case of a pullback, the 50- and 100-DMAs at Rs 1,352 and Rs 1,400 are likely to act as hurdles.
Route Mobile
Current Price: Rs 1,607
Upside Potential: 8.3%
Support: Rs 1,584; Rs 1,570; Rs 1,522
Resistance: Rs 1,667; Rs 1,774
The overall bias may remain cautiously optimistic as long as the stock holds above its 20-MMA; with interim support seen at Rs 1,584 and Rs 1,570 levels. On the upside, the stock can potentially rally to Rs 1,820; with interim resistance likely at Rs 1,667 and Rs 1,774 levels.
Balaji Amines
Current Price: Rs 2,247
Upside Potential: 12.7%
Support: Rs 2,190
Resistance: Rs 2,358; Rs 2,435
As such, the stock can rally to Rs 2,532 levels on the upside, with interim resistance seen at Rs 2,358 and Rs 2,435 levels. On the downside, the stock is likely to get support around Rs 2,190 levels.
EIH
Current Price: Rs 392
Upside Potential: 13%
Support: Rs 383; Rs 375; Rs 364
Resistance: Rs 405; Rs 427
As such, the 200-DMA support at Rs 383 remains the key; below which near support for the stock exists at Rs 375 and Rs 364 levels. On the upside, the stock needs to break and trade consistently above Rs 405 for the sentiment to turn favourable. The stock could potentially rally to Rs 443; with interim resistance seen at Rs 427.
Tamilnad Mercantile Bank (TMB)
Current Price: Rs 484
Upside Potential: 8.5%
Support: Rs 478; Rs 469
Resistance: Rs 493; Rs 511
In case of a dip, the stock could seek support around its 100- and 20-WMA at Rs 478 and Rs 469, respectively.
First Published: Sep 10 2024 | 2:18 PM IST
