Overnight Digest: Top 5 Mid and Small Cap Stocks to Watch for October 20, 2023

On Thursday, October 19, 2023, the Nifty 50 index opened with a gap-down and reached a low of 19,521.35 before recovering almost 100 points, settling at 19,624.70, down marginally by 46.40 points. On the daily chart, despite closing with a loss of 46.40 points, the Nifty 50 index formed a bullish candle as the close was greater than the opening.

The top gainers on the Nifty 50 index were Bajaj Auto, LTI Mindtree, Hero MotoCorp, Nestle India, and Ultratech Cement, all closing up by more than 1%. The top losers were Wipro, Tech Mahindra, Sun Pharma, NTPC, and UPL, all closing down by more than 1%.

Amongst the sectors, Nifty Auto was the top performer, closing up by 0.5%, while Nifty Metal, Nifty Oil and Gas, and Nifty Finance were the top losers, closing down by 1.2%, 1%, and 0.8%, respectively.

The Nifty Small Cap index provisionally closed up 0.15%, while the Nifty Midcap index closed slightly down by 0.09%.

Here are the 5 small-cap and mid-cap stocks to watch for tomorrow, October 20, 2023: 

1. DCX Systems (CMP Rs 291.30)

DCX Systems Limited has been issued the Certificate of Recognition as a “Four Star Export House” by the Directorate General of Foreign Trade, Department of Commerce, Ministry of Commerce and Industry, Government of India. This recognition is in accordance with the provisions of Foreign Trade Policy, 2023, acknowledging the company’s remarkable export performance. This news could induce a positive momentum in the stock; hence, watch out!

2. SML Isuzu (CMP Rs 1,272.05):

The stock outperformed the frontline indices, ending higher by nearly 4% with a 4.8-fold increase in volume, indicating bullish momentum. Keep it on your watchlist for tomorrow.

3. Sharda Motor Industries (CMP Rs 970.20):

The stock of Sharda Motor Industries ended in the green, up by 0.89%. The stock has a market cap of Rs 2,893 crore, and interestingly, it found support at the 50 DMA, with the volume for the day being above average. Hence, the stock should be on your watchlist.

4. Elecon Engineering (CMP Rs 786.95):

The company is set to announce its Q2FY24 results on October 20. Foreign Institutional Investor (FII) holdings have increased from 2.81% (Q1FY24) to 4.88% (Q2FY24). Additionally, the company is almost debt-free. It is advisable to keep this stock on your watchlist.

5. Atul Auto Ltd (CMP Rs 659.35):

The stock hit an upper circuit on Thursday and reached its 52-week high of Rs 668.55. It experienced a surge in volume by more than 3.5 times. Be sure to keep it on your radar.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to change. Please consult an expert before making related decisions.