These stocks have surged 50% so far in CY21; charts show further upside

If IDFC First Bank stock stays above the Rs 70-mark, it may rally in the direction of Rs 120 and Rs 135 from a medium-term perspective

Equity markets have seen wild wings over the past three months. While the indices clocked new record peak day after day ahead of Budget presentation, the rally strengthened further as Finance Minister proposed no tweaks in income tax, no addtional taxes on market participants, and green signal to a mega privatiosation drive.

However, come March, and inflation concerns on the back of swift demand recovery has worried investors. Over the past few weeks, inflation expectations have risen sharply, given the large-scale monetary and fiscal stimulus by global central banks amid ongoing vaccination efforts. Historically, mild-to-moderate inflation has been good for equities, but not the extreme, analysts say.

Effectively, the S&P BSE Sensex and the Nifty50 indices have slipped around 3 per cent each from their respective 52-week high levels, touched on February 16, 2021 as inflationary concerns pushed bond yields higher globally.

Yet, some of the small-cap stocks have managed to buck the trend and have jumped 50 per cent from the Nifty500 universe. Here's how some of these stocks look on the charts:

Jagran Prakashan Limited (JAGRAN): The stock has broken out of a year-long consolidation range above Rs 50 levels. Besides, the surge in volumes around Rs 40 – Rs 45 pushed stock above the breakout level in the month of February 2021. Although, the current momentum shows mild profit booking in the overbought category of Relative Strength Index (RSI), the overall strength and momentum is still optimistic. Any reversal above Rs 60 may see the stock rising towards Rs 100 levels. The gap-up close and sustainability above Rs 50 illustrates the ability to hold upside direction, as per the daily chart. CLICK HERE FOR THE CHART

NCC Limited (NCC): A strong breakout above the resistance of Rs 70 indicates a rally towards Rs 120 in the upcoming sessions. The stock has risen from the lows of Rs 60 to near Rs 100 in the last three months. Moreover, the RSI has witnessed no major sell-off in the overbought condition which shows that the immediate support of Rs 80 may see accumulation and reversal in the near-term, as per the weekly chart. Going forward, a decisive move above Rs 90 may see the stock moving to the next breakout levels of Rs 120-mark. CLICK HERE FOR THE CHART

IDFC First Bank Limited (IDFCFIRSTB): The stock breached the resistance level Rs 57 after two-years and rallied towards Rs 70 in the month of February 2021. The sharp rise in volume post the breakout provides further strength on the long-term basis. The RSI is not seeing any selling pressure in the overbought condition, as per the weekly chart. If the stock stays above the Rs 70-mark, it may rally in the direction of Rs 120 and Rs 135 from a medium-term perspective, as per the monthly scenario. CLICK HERE FOR THE CHART