5 small-cap stocks breaking out on charts now
Subscribe to enjoy similar stories. Fear and uncertainty have gripped the Indian stock markets. The Nifty has recently slipped below the 23,300 level, reflecting the broader market's ongoing struggle amid unsettling news, including the recent Adani bribery reports.
However, there is a silver lining for readers looking beyond the broader market sentiment. Certain small-cap stocks are defying the odds and resuming their bullish momentum. These stocks are breaking out on the charts and showing strong potential to outperform the market soon.
On Tuesday, we highlighted three breakout stocks that help you beat the stock market selloff. Before we head to the stocks list, let us analyse the Nifty Smallcap 250 index chart. The Nifty Smallcap 250 index, which tracks the performance of smaller companies, is currently at a crucial support level.
The 200-day exponential moving average (200DEMA) channel, created by plotting the high and low values of the 200DEMA, has proven to be an effective indicator. Over the past 18 months, this index has demonstrated remarkable, bullish opportunity, consistently bouncing back from the 200DEMA support and pushing higher. This trend suggests that small-cap stocks are positioned well to resume their upward trajectory despite the broader market's weakness.
With the Nifty Smallcap 250 index testing strong support levels, five small-cap stocks have shown impressive breakout patterns on their point & figure (P&F) charts. These stocks are poised to outperform the market and signal potential resumption in the bullish trends. Amber Enterprises India Ltd (market cap around ₹22,000 crore) Amber Enterprises is a leading player in the Indian air conditioning and refrigeration industry.
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