Dhunseri Ventures stocks surged 8% amidst market turbulence

In a turbulent session, the Nifty50 index managed to recover around 60 points from the day’s low and re-entered the channel. Currently, it is trading around the lower side of the channel. In such weak sentiments, one small-cap stock surged around 8% with strong volumes in the morning session.

The stock in discussion is Dhunseri Ventures Ltd, engaged in the manufacture and sale of PET Resin. It operates through the following segments: Treasury Operations and Trading Activities. The Treasury Operations segment involves holding treasury assets for capital appreciation and other related gains, while the Trading Activities segment is involved in securities trading.

Originally incorporated as Dhunseri Tea Co Limited, the company’s first business was the cultivation and production of tea at its tea estates located in Assam. Later, it acquired the Bottle Grade PET resin business of South Asian Petrochem Ltd, and the company’s name was changed to Dhunseri Petrochem & Tea Limited. Finally, on 11.12.2018, the name of the company was changed from Dhunseri Petrochem Limited to Dhunseri Ventures Limited (DVL).

After a massive rise of more than 700% from the lows of March 2020, the stock is currently consolidating in a broad range of Rs 350 on the higher side and Rs 184 on the lower side since the first week of August 2021. Interestingly, the lower side of the consolidation range coincides with the retracement support level of 50% of the last multibagger rally on the weekly chart. In the current week, the stock witnessed strong buying interest with volumes above the 20-week average, resulting in a surge of more than 9%.

Drawing a trendline from the high of the mid-week of January 2022 (Rs 316) to the first week of December 2022 (Rs 287), we can identify a breakout trendline of the continuation pattern named the Bullish Up Flag Pattern. Interestingly, the stock is currently trading just below this trendline, and a weekly close above this trendline (Rs 270) will confirm the breakout, potentially lifting the stock to Rs 380, which represents a gain of more than 40% from the current level. 

Therefore, long-term investors seeking opportunities in small-cap stocks should closely monitor Dhunseri Ventures Ltd.