CDSL, KPIL, Brigade: 4 midcap stocks that can fall over 14% from here

The key momentum oscillators of these four NSE smallcap stocks are showing a negative divergence; hence these stocks are likely to trade with a downward bias in the near term.

Equity benchmark indices are seen quoting at record high levels in recent days on optimism over economic growth forecast and reforms. The NSE Nifty 50 index has gained nearly 5 per cent so far in this month, and has rallied 8.5 per cent thus far in 2024.

Broader indices have outperformed the benchmark indices. The NSE MidCap index has soared nearly 8 per cent so far in June, and is up almost 22 per cent in less than six months in this calendar year.

Given the phenomenal run in the market, several stocks are seen trading in overheated territory and as such warrant some cautious stance. 

Here are four such MidCap stocks on the NSE that at present are showing a negative bias on the technical charts, hence may see a fall in the near-term.

Brigade Enterprises

Current Price: Rs 1,337

Downside Risk: 14%

Support: Rs 1,300

Resistance: Rs 1,410; Rs 1,430

The key momentum oscillators on the daily chart of Brigade Enterprises have given a negative divergence. Hence, going ahead, the stock is likely to exert downward pressure.

As such, the stock can potentially slide to Rs 1,200 levels, below which a test of Rs 1,150 too seems likely. On the upside, the stock is likely to face considerable resistance around Rs 1,410 - Rs 1,430 levels. Near support for the stock is seen at Rs 1,300 - its 20-DMA (Daily Moving Average). CLICK HERE FOR THE CHART

CDSL

Current Price: Rs 2,060

Downside Risk: 17.5%

Support: Rs 1,960

Resistance: Rs 2,200; Rs 2,250

CDSL stock has been consistently facing resistance around Rs 2,200 levels. The stock once again has slipped after testing the resistance earlier this month. On Wednesday, the stock was seen trading below its 20-DMA for the second straight trading day. CLICK HERE FOR THE CHART

Further, the 20-DMA at Rs 2,086 is seen on course to dip below the 50-DMA, which stands at Rs 2,060. As and when this crossover takes place, the stock will feel an added pressure. To add to the woes, key momentum oscillators on the daily and the weekly scale are showing negative divergence.

The weekly chart suggests that the stock may fall towards its 50-WMA (Weekly Moving Average) at Rs 1,700 levels in the near-term - indicating a downside risk of 17.5 per cent. In the interim support for the stock can be expected around Rs 1,960 levels. Resistance on the upside is seen at Rs 2,200 and Rs 2,250 levels.

Kalpataru Projects International (KPIL)

Current Price: Rs 1,164

Downside Risk: 15.8%

Support: Rs 1,120; Rs 1,072

Resistance: Rs 1,205; Rs 1,280

Kalpataru Projects stock has tumbled over 11 per cent from its June 10 high of Rs 1,250. In the process, the stock has dipped below its 20- and 50-DMA. Further, the 20-DMA is on the verge of falling below the 50-DMA. Key momentum oscillators too are indicating a likely bearish trend ahead.

Chart suggests that the KPIL stock has near support at Rs 1,120; below which a drop to Rs 980 levels seems likely. In the interim, some support can be expected around the 100-DMA at Rs 1,072. CLICK HERE FOR THE CHART

In case of a pullback, the stock is likely to face resistance around Rs 1,205; wherein the two short-term moving averages converge. The overall bias is likely to remain tepid as long as the stock trades below Rs 1,280.

Shoppers Stop

Current Price: Rs 733

Downside Risk: 14%

Support: Rs 700

Resistance: Rs 777

Shoppers Stop stock has been trading in the narrow band of Rs 700 - Rs 800 since late January 2024. After a failed attempt for an upside breakout, the stock now seems on course to test support at the lower-end of the existing trading range. CLICK HERE FOR THE CHART

Key momentum oscillators on the daily and weekly chart at present are exhibiting a mixed bias for now. As such, the support at Rs 700 holds the key. In case, the stock breaks the support, a deeper fall to Rs 630 levels seems possible.

On the other hand, break and sustained trade above Rs 777 levels, can renew hopes of an upside breakout.