RVNL, Polycab, CG Power: Technical view on stocks that may turn large-caps

Nuvama Alternative & Quantitative Research in its early predictions on AMFI semi-annual categorization expects RVNL, Polycab India and 5 other stocks to be upgraded to large-caps.

In its early predictions, on potential changes in large-cap, mid-cap and small-cap categorization by AMFI in the new year, Nuvama Alternative & Quantitative Research expect 7 midcap stocks including the likes of Rail Vikas Nigam (RVNL) and Polycab India to be upgraded to large-cap rankings.

 

The AMFI (Association of Mutual Funds in India) in consultation with Sebi (Securities Exchange Board of India) and the stock exchanges announces a semi-annual report on stock categorization. This categorization serves as a reference note to mutual fund managers. The next AMFI re-categorization is due in January 20205. 

 

Nuvama Alternative & Quantitative Research in its report dated October 31, expects RVNL, Polycab India, CG Power, ICICI Prudential, ICICI Lombard, Cummins India and Indus Towers to be shifted from the mid-cap category to large-cap.

 

 

Meanwhile, as many as 9 large-cap stocks could move down-the-ladder to the midcap category, including the likes of Adani Total Gas, Union Bank of India, Shree Cements, BHEL, Canara Bank and Jindal Steel, the report stated. That apart, select other stocks too will be re-classification from mid-cap to small-cap and vice versa.

 

 

Against this background, here's a technical outlook on select 5 stocks that are likely to be re-categorized.

 

RVNL

Current Price: Rs 451

Upside Potential: 16.4%

Support: Rs 395

Resistance: Rs 490; Rs 515

 

RVNL stock is seen making lower-highs and lower-lows after it registered a peak at Rs 644 on July 15, 2024. Post which, the stock tumbled nearly 37 per cent to a low of Rs 408 on October 28. In the process, RVNL retraced over 38 per cent of its previous rally which started in April 2023. CLICK HERE FOR THE CHART 

 

The medium-term chart suggests that the stock could consolidate in the near-term with key support at Rs 395, and resistance at Rs 525. The Rs 395 support coincides with the 200-DMA (Daily Moving Average), which stands at Rs 395. On the upside, the stock is expected to face multiple hurdles around Rs 490 and Rs 515 levels. The stock will need to break and trade consistently above Rs 525 levels for the sentiment to turn favourable. 

 

 

Polycab India

Current Price: Rs 6,450

Downside Risk: 7%

Support: Rs 6,300

Resistance: Rs 6,750; Rs 6,900

 

Polycab India stock has been languishing below the 100-DMA for the last three weeks; however, the stock seems to be consolidating rather than drifting lower. Thus the recent low around Rs 6,300 becomes crucial for the stock in the near-term. Break and sustained trade below the same could trigger a fall towards the 200-DMA around Rs 6,000-mark.

 

In case of a pull-back, Polycab stock is expected to face resistance around its 100-DMA, which now stands at Rs 6,750 followed by another hurdle at Rs 6,900. The stock will need to break and trade consistently above Rs 6,900 for the sentiment to revive. CLICK HERE FOR THE CHART

 

CG Power

Current Price: Rs 714

Downside Risk: 12.6%

Support: Rs 660; Rs 645

Resistance: Rs 728; Rs 744; Rs 775

 

CG Power too has been consolidating below its 100-DMA for the last two weeks. The 100-DMA stands at Rs 728; above which resistance for the stock is visible at Rs 744 and Rs 775. On the downside, the stock is likely to drift towards the 200-DMA, which stands at Rs 624. Interim support for the stock can be expected around Rs 660 and Rs 645 levels. CLICK HERE FOR THE CHART

 

 

NHPC

Current Price: Rs 83

Downside Risk: 18.5%

Support: Rs 79; Rs 75

Resistance: Rs 90; Rs 97

 

NHPC has witnessed a steep 36 per cent from its July high of Rs 117.80. Technically, the short-to-medium term bias for the stock is likely to remain negative as long as the stock trades below Rs 97. In case of a pull-back, interim resistance for the stock is visible at Rs 90.

 

On the downside, sustained trade below Rs 79, can trigger a fall towards the 100-WMA (Weekly Moving Average) at Rs 67.60; with interim support likely around Rs 75. CLICK HERE FOR THE CHART

 

Mankind Pharma

Current Price: Rs 2,680

Upside Potential: 14.4%

Support: Rs 2,630; Rs 2,550; Rs 2,425

Resistance: Rs 2,855; Rs 2,960

 

Mankind Pharma stock recently gave a positive breakout on the daily scale. Chart shows that the bias as the counter is likely to remain positive as long as the stock sustains above Rs 2,425 levels; with near support placed at Rs 2,630 and Rs 2,550 levels. On the upside, the stock can spurt to Rs 3,065 levels; with interim resistance likely around Rs 2,855 and Rs 2,960. CLICK HERE FOR THE CHART