Smallcap Stocks Break 200-DMA Barrier After 11 Months

Two smallcap stocks, Valor Estate (formerly DB Realty) and Ujjivan Small Finance Bank (SFB), have made a significant technical breakthrough by trading above their 200-Daily Moving Average (DMA) after 11 months. This development signals a potential bullish trend and has caught the attention of market analysts and investors.  

 

Valor Estate is currently priced at ₹193, with an upside potential of 30.6%. The stock’s 200-DMA stands at ₹173.60, acting as immediate support. Despite being overbought on the daily chart, Valor Estate has given a fresh breakout on the weekly scale, indicating a positive near-term bias. Key resistance levels are identified at ₹205, ₹229, and ₹242, with the stock potentially soaring to ₹252.  

 

Ujjivan SFB, priced at ₹39.30, shows an upside potential of 14.5%. The stock has been trading above its 200-DMA of ₹38.11 for four consecutive sessions. Momentum oscillators on daily and weekly charts suggest a slightly positive bias. However, the stock faces an overhead hurdle at ₹40.86, which it has struggled to conquer since March 2024.  

 

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Sources: Business Standard, Chartink, Economic Times.