GNFC, ITI, ACE among 8 smallcap stocks testing long-term averages on charts

ACE is seen testing its 200-DMA after 2 years, while TMB after 5 months; rest of the smallcap stocks were consolidating around the 200-DMA for more than a month now; check bullish, bearish stocks here

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.

Amidst this, there are 8 such stocks from the smallcap space which are seen testing their key long-term (200-DMA) moving average on the daily scale. The 200-DMA is considered as a pivot in determining the long-term trend of the stock. In general, stocks trading above the 200-DMA are considered as bullish (positive), while those below the long-term average as bearish (negative).

 

 

 

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

GNFC stock has been hovering around its 200-DMA since the end of August. The stock has swung above and below this key moving average multiple times in the last 11 trading sessions, indicating a stiff battle between the bulls and bears to gain the upperhand. CLICK HERE FOR THE CHART

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

Mastek stock has tumbled over 13 per cent in the last 10 trading sessions, and is now seen testing its 200-DMA at Rs 2,713 levels. On the weekly scale, the stock is seen testing support at its 20-WMA (Weekly Moving Average) - a key level the stock has not violated since June 2024. CLICK HERE FOR THE CHART

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

ITI stock too is seen consolidating around its 200-DMA for the last two months. The stock seems to be seeking support around the lower-end of the Bollinger Bands at Rs 280 and facing resistance around its super trend line at Rs 309. CLICK HERE FOR THE CHART

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

ACE stock is seen testing its 200-DMA for the second straight trading session. The 200-DMA stands at Rs 1,240; and the stock is seen trading in oversold zone on short- and medium-term charts. CLICK HERE FOR THE CHART

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

Route Mobile has been languishing around its 200-DMA for more than a month now. The stock has frequently swung above and below this long-term moving average in this period. On the longer-term scale, the 20-MMA (Monthly Moving Average) at Rs 1,522 seems to be acting as a crucial support. CLICK HERE FOR THE CHART

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

Even as Balaji Amines stock is seen consolidating around its 200-DMA for the last few weeks, the key momentum oscillators across time-frames have turned favourable; thus suggesting a likely upside from present levels. CLICK HERE FOR THE CHART

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

EIH Hotel stock seems to be finding consistent support around its 200-DMA for more than a month now. Key momentum oscillators are positive on the daily scale, and likely to turn favourable on the weekly scale too. CLICK HERE FOR THE CHART

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

TMB is the only stock from the 8 here to have recovered significantly and seen testing its 200-DMA after a gap of 5 months. The stock seems on course to rally towards Rs 525 levels; with interim resistance seen at Rs 493 and Rs 511. CLICK HERE FOR THE CHART

In case of a dip, the stock could seek support around its 100- and 20-WMA at Rs 478 and Rs 469, respectively.