KPR Mill, eClerx: 5 midcap, smallcap stocks to play the market bounce

KPR Mill, eClerx, Granules, Cera Sanitaryware and BLS International are the 5 mid- and smallcap stocks that look strong on technical charts and can potentially gain up to 43% from present levels.

The Sensex and the Nifty have bounced back by more than 1 per cent in trades on Wednesday amid signs of a recovery in global markets. The BSE Sensex was quoting at 79,500 levels, up 900 points; while its counterpart the Nifty 50 index gained 280 points at 24,275 levels.

In the previous three trading sessions, the BSE and NSE benchmark indices fell up to 4 per cent amid the global market rout. As the equity market attempts a recovery, here are 5 stocks from the broader market to play the likely bounce.

These 5 stocks across the midcap and smallcap segment have been able to buck the recent market fall and look strong on the technical charts.

 

Here's a detailed guide for each of the stock:

KPR Mill

Current Price: Rs 980

Upside Potential: 42.9%

Support: Rs 940

Resistance: Rs 1,065; Rs 1,150

KPR Mill gave a fresh breakout on the daily chart on Tuesday, August 6. The stock is now seen trading above the higher-end of the Bollinger Bands for the second straight day. 

The near-term bias is likely to remain upbeat as long as the stock holds above Rs 940. On the upside, the stock can potentially attempt a rally towards Rs 1,400-mark, with interim resistance seen around Rs 1,065 and Rs 1,150 levels. CLICK HERE FOR THE CHART

eClerx Services

Current Price: Rs 2,500

Upside Potential: 20%

Support: Rs 2,450; Rs 2,420; Rs 2,390

Resistance: Rs 2,570; Rs 2,730

eClerx Services stock reclaimed its 20-DMA (Daily Moving Average) after nearly 3 weeks. Key momentum oscillators like the 14-day RSI (Relative Strength Index), Slow Stochastic and the MACD (Moving Average Convergence-Divergence) are also in favour of the bulls. CLICK HERE FOR THE CHART

Hence, the stock may trade with a positive bias in the near term as long as it holds above Rs 2,450, below which multiple supports exists around Rs 2,420 and Rs 2,390 levels. On the upside, the stock can potentially rally to Rs 3,000-mark, with interim resistance seen around Rs 2,570 and Rs 2,730 levels.

Granules India

Current Price: Rs 655

Upside Potential: 11.5%

Support: Rs 620; Rs 600

Resistance: Rs 660

Granules India stock has surged nearly 30 per cent in the last 12 straight trading sessions. The stock has been trading alongside the higher-end of the Bollinger Bands on the daily scale.

Chart shows that the bias is likely to remain positive as long as the stock sustains above Rs 620 - Rs 600 support zone. On the upside, the stock may extend the rally to RS 730 levels, with interim resistance expected around Rs 660 levels. CLICK HERE FOR THE CHART

BLS International

Current Price: Rs 386

Upside Potential: 14%

Support: Rs 358; Rs 349

Resistance: Rs 400

BLS International is seen attempting a breakout on the daily and weekly scale. The stock needs to break and trade consistently above Rs 386 levels for fresh upside momentum. CLICK HERE FOR THE CHART

On the upside, the stock can jump to Rs 440 levels. Some resistance can be expected around the Rs 400-mark. Support on the downside is visible at Rs 358 and Rs 349.

Cera Sanitaryware

Current Price: Rs 10,060

Upside Potential: 13.6%

Support: Rs 9,800; 9,400

Resistance: Rs 10,000; Rs 10,380

Cera Sanitaryware stock has given a breakout on the daily scale. The near-term bias for the stock is likely to remain bullish as long as it holds above Rs 9,400 levels. On the upside, sustained trade above Rs 9,800 will strengthen the stock. CLICK HERE FOR THE CHART

Cera Sanitaryware can rally up to Rs 11,430 on the higher side, with interim resistance expected around Rs 10,000 and Rs 10,380 levels.