Bajaj Consumer, HEG, Dish TV among small-cap buy candidates on the charts

resr 5paisa Research Team

Last Updated: 6th September 2022 - 02:03 pm

Listen icon

The Indian stock market is consolidating after a sharp bounce that was preceded by a deep correction over the last three months. Although the benchmark indices have struggled to make a breakout and attain the all-time peak of last year, they seem to be taking a breather before a new push.

Investors looking at charts and price and volume patterns have various parameters to decide whether a stock is ripe for the pick or is showing signals of weakness and is best left untouched.

We picked a metric called Williams %R, which is a momentum indicator that can signal bullish or bearish trends for a stock.

Developed by Larry Williams, Williams %R is the inverse of the Fast Stochastic Oscillator. Its reading varies between 0 and -100, with 0 to -20 indicating an overbought range and -80 to -100 being seen as an oversold zone.

We ran an exercise to see which small-cap stocks are in the bullish zone as per Williams %R. In particular, we looked at stocks with market cap of under Rs 5,000 crore, with the William %R just crossing over -80 mark from the previous score at that level. We spotted over 100 such stocks which could be set for a trend reversal.

Filtering them from the top end of their market cap, we get names like HEG, FDC, Himadri Speciality, Gujarat Pipavav Port, Dhani Services, Hikal, Action Construction, Ganesh Housing Corp, Dish TV India, Indo Count Industries and Anant Raj.

Lower down the order there are companies like Ahluwalia Contracts, Arvind, HIL, Butterfly Gandhimathi, Eveready, HBL Power, Cantabil Retail, Gulf Oil Lubricants, Bajaj Consumer Care, Greenply, Gufic BioSciences, Gravita, Amrutanjan Health, Gokaldas Exports, HCC and Gati.

In the penny stock pack with stock price of under Rs 20 there are companies like GTL, Future Enterprises, Aksh Optifibre, Ansal Properties, Gayatri Projects, Dhanlaxmi Bank, Future Consumer and HCL Infosystems.

FREE Trading & Demat Account
Open FREE Demat Account with endless opportunities.
  • Flat ₹20 Brokerage
  • Next-gen Trading
  • Advance Charting
  • Actionable Ideas
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Indian Stock Market Related Articles

Top Multibagger Stocks for the Next 5 Years in India

by 5paisa Research Team 4th Dec 2024

Top Growth Stocks Trading at a Discount

by 5paisa Research Team 4th Nov 2024

Best Gold ETFs in India

by 5paisa Research Team 22nd Nov 2024

Best Corporate Bonds in India

by 5paisa Research Team 4th Nov 2024

Top 10 Best Government Bonds in India

by 5paisa Research Team 4th Nov 2024

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91

By proceeding, you agree to all T&C*

footer_form