Chart Check: Over 20% rally in a month, this smallcap stock is a good buy on dips stock; here’s why

Chaman Lal Setia Exports, part of the S&P BSE Smallcap index, has rallied over 20% to hit a fresh record high of Rs 173 earlier in February 2023 but the rally may not be over yet, suggest experts.

The company with a market capitalization of less than Rs 1000 cr hit a record high of Rs 173 on 17 February 2023 but it failed to hold on to the momentum.

The stock picked up momentum in the last month. It rose from Rs 130 as on January 24 to Rs 157 recorded on February 24, 2023, which translates into an upside of 21%.


Technical indicators suggest that the upside remains intact and short to medium-term traders can look to buy the stock for a possible target of Rs 300 in the next 6 months, suggest experts.

The Relative Strength Index (RSI) is placed at 58.3. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its Center Line, but below the signal line.

In terms of price action, the stock is trading below 5 and 10-DMA but above 20,30,50,100, and 200-DMA which is a positive sign for the bulls.

“The stock price of Chaman Lal Setia Exports started its up move from 12.41 (March 2015). The stock made a high of 220 in Dec 2017 accompanied by Higher Bottoms & Top formations,” Bharat Gala, President - Technical Research, Ventura Securities, said.

“The stock always traded above averages and never breached the 38 months, from March 2014 till Dec 2017,” he said.

“Recently, the stock gave a Pattern breakout & made a new high of 174 above two previous swing highs,” highlights Gala.

“The MACD, Demand Index and Aroon Up Down indicator suggest a possible firm uptrend. The possible target is Rs 225-300,” he recommends.

“If the stock price corrects downwards the buy levels are Rs 159-150-144-136-132. A stop loss to be observed in the trade is Rs 120,” added Gala.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)