Smallcap Stocks To Watch: SEBI RA Palak Jain Is Bullish On Nova Agritech, JG Chemicals

Even as the Indian equity markets remain rangebound, select pockets of opportunities are emerging in the broader markets. 

SEBI-registered analyst Palak Jain has identified two small-cap stocks, Nova Agritech and Asahi India, as bullish candidates, citing strong technical setups.

Nova Agritech

The stock is currently trading above its 50-day simple moving average of ₹48.89, indicating a bullish trend, Palak said.

The Relative Strength Index (RSI) is at 60.36, indicating bullish momentum with further room for buying. However, the Williams %R is at -28.30, an indicator that the stock is approaching overbought levels, she added, cautioning about possible short-term consolidation.

Nova Agritech has caught the eye of investors after the stock jumped 22% over the last three months, following selling pressure earlier this year. Year-to-date (YTD), the stock has shed 15.52%.

The agricultural inputs sector is gaining strong upward momentum, driven by favorable weather conditions and rising demand for agri-input products, factors that are directly supporting companies like Nova Agritech, the analyst said.

At the time of writing, the shares were trading 1.4% lower at ₹52.

Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ a day earlier.

JG Chemicals

JG Chemicals has witnessed strong bullish momentum, with the stock surging over 15% on Monday. This sharp move signals growing investor confidence and heightened market participation, the analyst said.

From a technical standpoint, key support and resistance levels are now in focus. The immediate support lies at ₹460.25, followed by stronger support at ₹404.95, Palak said.

On the upside, the stock faces resistance at ₹542, while the previous yearly high of ₹537.40 acts as a secondary hurdle.

The 50-day Simple Moving Average (SMA), at ₹367.77, suggests a solid support base if the stock undergoes a correction.

As long as JG Chemicals trades above ₹460.25, the overall structure remains bullish, with a potential retest of the ₹542 level. However, any decisive fall below this support could signal a short-term trend reversal, she added.

The stock is seeing some profit booking in the early session after yesterday’s surge. It is currently down 1.7% at ₹504.55.

YTD gains are almost a quarter of the stock’s total value.

On Stocktwits, retail sentiment turned ‘bullish’ amid ‘extremely high’ message volumes.

For updates and corrections, email newsroom[at]stocktwits[dot]com. 

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