Overnight Digest: Top 5 mid and small-cap stocks to watch for November 1, 2023

Following a brief two-day rebound, Nifty50 experienced a downturn today as bearish sentiments dominated. The index opened at 19,091.4, marking both the day’s high and low of 19,056.45. Nifty50 concluded at 19,079.6, down by 61.3 points, representing a 0.32% decrease from the previous day’s close. In Nifty50, 26 advanced while 23 stocks declined and 1 stock remained unchanged.

Notably, the top gainers for the day included SBI Life, Titan, HDFC Life, Kotak Bank, and Asian Paints, while Sun Pharma, M&M, Eicher Motors, LTI Mindtree, and ONGC faced significant losses.

Simultaneously, the BSE Sensex succumbed to the bearish trend, closing at 63,874.93, a decline of 237.72 points or 0.37% from the previous session.

Turning our attention to sectoral indices, Nifty Realty emerged as one of the top gainers in the sectoral markets, posting an impressive gain of 1.27% for the day. Nifty Media followed with a gain of 0.91%. In contrast, Nifty Auto and Nifty Pharma did not perform as well.

In broader market indices, Nifty Smallcap 100 showed resilience with only a minimal downside of 7.9 points, reflecting a 0.06% decrease. Nifty Midcap 100 demonstrated strength, closing up by 33.35 points, a 0.37% increase.

Investors are closely monitoring the upcoming Federal Reserve (FED) meeting and the Federal Open Market Committee (FOMC) speech for valuable insights into the market’s future direction.

Here are the Top 5 Mid and Small-cap Stocks to Watch for Tomorrow:

1. Action Construction Equipment Ltd (CMP Rs 838.8) The stock reached a new 52-week high of Rs 842 after closing the day with gains of 9.14%. This stock has delivered remarkable returns of 85% over the past 4 months, making it a contender for our watchlist.
2. Greenpanel Industries Ltd (CMP Rs 354.05) The company is set to release its Q2FY2024 financial results on November 1, 2023. With a 3-year compounded profit and sales growth of 122% and 27%, respectively, and delivering 70% returns to investors over a 3-year period, it is recommended to keep this stock on your watchlist.
3. Cantabil Retail India Ltd (CMP Rs 1109.7) The company recently announced the opening of 16 new showrooms/shops in different locations in India during October 2023. With a total of 498 showrooms/shops, the company boasts a 3-year compounded profit and sales growth of 60% and 18%, making it a strong candidate for tomorrow’s watchlist.
4. Zaggle Prepaid Ltd (CMP Rs 206.7) Zaggle has secured a significant order estimated at INR 76 crores over a three-year period through its strategic partnership with Kotak Mahindra Bank Limited. This order includes a comprehensive suite of financial products, enabling professionals to increase their income by up to 7%, making it a valuable addition to the watchlist.
5. JK Tyre & Industries Ltd (CMP Rs 304.3): The company is set to release its Q2FY2024 financial results during market hours. Delivering strong stock returns of 70% to investors over a 1-year period and with TTM compounded profits of 97% and TTM sales growth of 13%, this stock is worth watching.

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 changes. Please consult an expert before making related decisions.