5 Smallcap Stocks Under ₹100 to Add to Your Watchlist
3 min read . Updated: 09 Nov 2022, 11:00 AM IST
Premium- These five stocks are looking good on charts and could breakout along with the Nifty smallcap index.
Yesterday, the week started on a positive note for Indian share markets. The Nifty 50 index hit a high of 18,255, a couple of percentage points away from its all-time high of 18,604.
While the broader market index Nifty500 is merely 3% away from its all-time high, the smallcap index is yet to catch up with the momentum.
US markets are showing signs of reversal but are yet to confirm the bottom.
What highlighted me to write this piece and record video around the same for our subscribers was the US smallcap index - Russell2000.
Russell 2000 Weekly Chart
The high of 1,740 in 2018 acted as the resistance zone in 2020 ahead of the pandemic fall. The index corrected over 40% during the pandemic phase and witnessed the V-shape recovery in sync with the large-cap indices.
Currently, the index is back around the 1,700-1,800 zone to retest the long-term technical breakout levels.
The resistance turns support, and the probable double bottom pattern is visible on charts indicating the bottom process in on cards. Though the confirmation of the double pattern will be above 2,050.
As Indian markets are outperforming the US markets, the Nifty SmallCap index has just broken out of its consolidation zone.
Nifty SmallCap Index Daily Chart
Something is on cards for SmallCap index as it breaks out of the falling trendline on the daily chart indicating the bulls are warming up for the bigger rally.
The horizontal trendline which acted as resistance in the first half of 2022 is acting as a support zone for bulls in the second half.
And the golden crossover is on cards too as the 50DEMA (green) and 200DEMA (orange) converge to turn bullish.
With the Nifty SmallCap index suggesting the bullish scenario on charts and Russell2000 in the bottoming process, I believe it’s time to focus on smallcap stocks.
Here is the list of potential smallcap stocks under ₹100 which investors should have on their watchlist.
Please note, these are not recommendations by any stretch. Just a list of stocks that look good on charts.
#1 IDFC Ltd
IDFC, incorporated in 1997, is a non-banking finance company (NBFC) regulated by the Reserve Bank of India.
The company currently trades at ₹81. It touched a new 52-week high today.