However, there is a silver lining for readers looking beyond the broader market sentiment. Some small-cap stocks are defying the odds and resuming their bullish momentum. These stocks are rocking the charts and showing strong potential to outperform the market soon.
On Tuesday we highlighted three breakout stocks Which helps you to beat the selloff in the stock market. Before moving on to the stock list, let us analyze the Nifty Smallcap 250 index chart.
nifty smallcap 250 chart
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The Nifty Smallcap 250 index, which tracks the performance of smaller companies, is currently at a key support level. The 200-day exponential moving average (200DEMA) channel, created by plotting the high and low values of the 200DEMA, has proven to be an effective indicator.
Over the past 18 months, the index has demonstrated remarkable, bullish opportunities, consistently bouncing back from the 200DEMA support and moving higher. This trend suggests that small-cap stocks are well positioned to continue their upward trend despite broader market weakness.
5 small-cap stocks are breaking out and resuming bullish momentum
With the Nifty Smallcap 250 index testing the strong support level, five small-cap stocks have shown impressive breakout patterns on their Point and Figure (P&F) charts. These stocks are poised to outperform the market and signal a possible resumption of the bullish trend.
Amber Enterprises India Limited (Market cap around 22,000 crores)
Amber Enterprises is a leading player in the Indian air conditioning and refrigeration industry. It specializes in manufacturing and supplying a wide range of products such as air conditioners, heat exchangers and compressors. The company has established itself as a major supplier to major global brands, and its diverse product offering has made it a major force in the HVAC (heating, ventilation and air conditioning) sector.
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On P&F charts, Amber Enterprises sees a significant breakout 4,800 level, followed by a strong rally above 6,000. The stock is now showing a double top breakout (DTB), indicating resumption of bullish momentum. With the stock breaking above Rs. The 6,500 mark, as the bullish trend continues, has the potential to continue its upward move.
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Ami Organics Limited (Market cap around 8,600 crores)
Amy Organics is a leading player in the specialty chemicals sector, offering a wide range of products used in pharmaceuticals, agrochemicals and polymers.
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The share price witnessed a major breakout above Rs. 1,400 on the charts, indicating potential long-term bullishness. The stock has followed a series of 45-degree trendlines, which has strengthened bullish momentum.
Furthermore, the breakout from the 4-column triangle pattern confirms the resumption of the trend, indicating that Ami Organics has the potential to continue its bullish momentum and outperform the benchmark index.
Krishna Institute of Medical Sciences (Market cap around Rs 23,400 crore)
Krishna Institute of Medical Sciences, commonly known as KIMS, is a leading healthcare provider in South India. The company operates multi-specialty hospitals and provides various medical services including emergency care, surgery and oncology.
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On the P&F charts, KIMS has experienced a double top breakout (DTB) followed by a solid 45-degree trendline, indicating a possible resumption of its bullish trend.
The stock is trading near its all-time highs and is outperforming the small-cap index with its strong fundamentals and technical indicators pointing to a sustained uptrend.
Also read: Why do both of these derivatives look promising on the stock charts?
Kirloskar Brothers Limited (Market cap around 17,500 crores)
With over 100 years of experience, Kirloskar Brothers is a well-established engineering company specializing in fluid management solutions. The company designs and manufactures pumps, valves and other mechanical products used in industries ranging from water supply to power generation.
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On the P&F chart, the stock broke out of the triple top breakout (TTB) pattern, indicating a strong breakout from the nearby resistance zone. 1,800. This was followed by another breakout at Rs. 2,100, indicating that the bullish trend is resuming. The chart indicates further upside potential, making this an attractive small-cap stock to monitor.
Mastek Limited (Market Cap~ 9,900 crores)
Mastech is a leading global IT services and consulting firm providing digital transformation solutions to clients across diverse sectors including retail, banking and insurance. The company is known for its expertise in cloud computing, data analytics and enterprise resource planning (ERP), and its strong track record in executing large-scale projects has earned it a solid customer base.
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On the P&F chart, Mastek recently saw a breakout from the long-term trendline marked by a blue line, followed by a successful breakout from the TTB pattern. These signs suggest that the stock is resuming its bullish momentum and could potentially outperform the small-cap index.
Small-cap stocks may outperform in challenging times
Nifty Smallcap 250 index is testing key support, and stocks like Amber Enterprises, Ami Organics, KIMS, Kirloskar Brothers and Mastek are moving ahead with strong technical setups indicating the possibility of sustained bullish trend.
It is important to keep a close eye on these stocks during market turmoil, as they may be among the few shining stars that can outperform broader market trends.
Read on for more such analyzes profit pulse,
Note: The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. This is not a recommendation. If you wish to consider any investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
As per SEBI guidelines, the author and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, Defined’s clients may or may not own these securities.
Brijesh Bhatia has over 18 years of experience in India’s financial markets as a trader and technical analyst. He has worked with companies like UTI, Asit C Mehta and Edelweiss Securities. Currently he is an analyst at Defendage.
Disclosure: The author and his dependents do not own the stocks discussed here. However, Defined’s clients may or may not own these securities.
