* Trading in tandem with the benchmark: The Nifty Midcap is up by nearly a percent so far this year in line with the Nifty index while the smallcap index is reeling behind as it is down by nearly 14%.
* Continuation pattern in making: It has retraced from its record high in the last two months and currently holding strongly above the support zone of medium term moving average (100 EMA). The chart structure indicates the formation of a cup and a handle pattern.
* Outperformance to continue: Within the broader space, we believe the prevailing outperformance of the Midcap pack would continue as the smallcap index has multiple hurdles to cross to be league.
Aegis Logistics Ltd.
* Aegischem formed a reversal pattern after spending nearly 8 months in a corrective phase and witnessed a breakout from the same in July 2022.
* It has been gradually inching higher since then while holding strongly above the support zone of major moving averages.
* It has recently completed the formation of a buying pivot after hovering in a range for a month and looks set for a fresh surge.
Gujarat Narmada Valley Fertilizers and Chemicals Ltd.
* It witnessed almost a vertical recovery from March 2020 low i.e. 85 levels and made a new record high at 865 levels in just two years.
* To digest such phenomenal gains, it underwent a consolidation phase while trading in a triangle pattern.
* It’s currently trading on the verge of a breakout from the same.
KPIT Technologies Ltd
* It is among the top-performing counters in the midcap IT space.
* Unlike other IT counters, it bottom-out early from the corrective phase and seeing a steady rebound since July 2022.
* It has witnessed a fresh breakout from a month-long consolidation phase of late and looks set to retest the record high soon.
Manappuram Finance Ltd.
* After the sharp correction from its record high, Manappuram paused the monthly support zone around 80 levels and reboundedgradually thereafter.
* The last eight months of price action indicate a formation of a reversal pattern and it’s currently trading around the breakout zone.
* All indications are pointing towards a gradual up move from hereon.
Zydus Lifesciences Ltd.
* Zyduslife hovered in the consolidation range of 330-380 levels for nearly seven months after a sharp decline from its record high and finally witnessed a breakout in Oct 2022.
* It has formed a flag (indicates pause) after the initial surge, offering a fresh buying opportunity to those who missed the chance earlier.
* The recent buoyancy in the pharma space is added positive
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