Overnight Digest: Top 5 small-cap and mid-cap stocks for October 19, 2023

In today’s trading session, the Nifty 50 index grappled with bearish sentiments, culminating in a substantial decline. Commencing at 19,820.45, it concluded the day at 19,671.1, marking a descent of 140 points or 0.71% from the previous day’s closure. The trading day witnessed a high of 19,840.95 and a low of 19,659.95, underlining the market’s inherent volatility.

The advanced-decline ratio, at a mere 0.28, revealed a pronounced sell-off in the majority of index stocks. This suggests a risk-averse market sentiment and a lack of conviction in the short-term market outlook.

Within this challenging market environment, several stocks exhibited resilience. Notably, Cipla, Dr Reddy, Tata Motors, Sun Pharma, and SBI Life emerged as top gainers, with their stocks weathering the broader market headwinds. On the flip side, Bajaj Finance, Bajaj Finserv, HDFC Bank, Reliance, and NTPC found themselves among the top losers, grappling with substantial setbacks, possibly attributed to sector-specific or macroeconomic factors.

Meanwhile, the Nifty Midcap 100 and Nifty Small Cap 100 indices also sustained notable declines, closing down by 0.90% and 0.34%, respectively, succumbing to the prevailing sell-off pressure.

Here are the 5 mid and small-cap stocks to watch for tomorrow, October 19, 2023: 

1. Bajaj Consumer (Current Market Price: Rs 242.9)
   Bajaj Consumer Care Ltd. recently reported robust Q1FY24 results, signifying an exceptional performance.
   Notably, they achieved a remarkable 8.5% surge in sales, accompanied by a substantial 15% upswing in net profit. Given this financial strength, it is prudent to consider including Bajaj Consumer Care Ltd. in your watchlist, particularly as the stock has experienced a significant surge in trading volume, surpassing its average volume by more than 3.07 times.
2. Dhunseri Ventures (Current Market Price: Rs 293.20)
   Dhunseri Ventures saw its stock reach a new 52-week high, touching Rs 302.3 on October 18, 2023. Of significance is the considerable surge in trading volume by more than 25.81 times.
3. Pennar Industries (Current Market Price: Rs 122.4)
   Pennar Industries is presently trading at its all-time high. The company has notably improved its debtor days, reducing them from 72.2 to 45.8 days. Furthermore, the stock has delivered impressive returns of 93% over the past year. As such, it is advisable to add this stock to your watchlist.
4. Yuken India Ltd (Current Market Price: Rs 806.5)
   Yuken India Ltd. finds itself trading near its all-time high, supported by favourable financial results. The company recently reported a remarkable 91% increase in net profit.
5. AVT Natural Products (Current Market Price: Rs 90.75)
   AVT Natural Products has witnessed a substantial surge in trading volume, exceeding the average volume by more than 14.13 times. This development underscores the stock’s heightened investor interest and merits inclusion in your watchlist for further monitoring.

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.