Overnight Digest: Top 5 mid and small-cap stocks to watch out for Feb 12, 2024

Domestic equity bourses closed the day higher. The market experienced a strong recovery driven by banks, with ICICI being the top contributor to the Nifty index.

The Sensex, a key index, closed slightly up by 0.23% at 71,595.49 points, while the Nifty, another major index, also rose by 0.3%, closing at 21,782.50 points.

Among the top gainers were sectors like banking, financial services, and pharmaceuticals, while sectors like metals, energy, IT, and auto experienced losses.

Grasim, SBI, and Apollo Hospital were among the top-gaining stocks, while M&M, ONGC, and Bharti Airtel were among the top-losing stocks in the Nifty 50 index.

PSU banks continued their winning streak, with SBI and Bank of Baroda reaching fresh highs. Cement stocks, including ACC, Ambuja, and India Cements, saw buying interest and emerged as the top gainers.

The broader market saw significant declines, with the Nifty Midcap falling by 1.34% and the Nifty Smallcap dropping by 1.7%. The underperformance of midcap stocks led to a market breadth that favoured declines.

Here is the list of the Top 5 Mid and Small-cap stocks to watch

1. Sundaram Brake Linings Ltd (Rs 700.7)
   Sundaram Brake Linings Ltd manufactures asbestos-free friction materials. The stock experienced a significant surge in trading volume today, surpassing its weekly average by almost 54 times. Considering this positive signal, it’s advisable to consider adding this stock to your watchlist.
2. Bigbloc Construction Ltd (Rs 203.55)
   Bigbloc Construction Ltd reached a new 52-week high price of Rs 213.60. The company is primarily engaged in the manufacture, sale and marketing of AAC (Aerated Autoclaved Concrete) Blocks. These AAC Blocks of the company are marketed under the Brand name of NXTBLOC. Add this stock to the watchlist.
3. Websol Energy System Ltd (Rs 479.25)
   Websol Energy System Ltd is engaged in the business of manufacturing photovoltaic crystalline solar cells and related modules in India. Today, the shares of the company were locked in an upper circuit of 5% showcasing strong bullish momentum. The stock has delivered 94% returns YTD. Hence it is a potential contender for the watchlist.
4. Zaggle Prepaid Ocean Services Ltd (Rs 269.5)
   Zaggle Prepaid Ocean Services Ltd has entered into an agreement with Lifestyle International Private Limited for 3 years. This contract is for Employee Benefits purposes and the company is set to earn Rs 7 crore per annum for 3 years of contract.The company builds world-class financial solutions and products to manage the business expenses of corporates, SMEs, & Startups through automated and innovative workflows. Hence add this stock to the watchlist.
5. Bajel Projects Ltd (Rs 222.35)
   Bajel Projects Ltd is set to release its Q3FY2024 results on February 12. Thus, it is advisable to add this stock to the watchlist. The company is in the business of Engineering, Procurement and Construction and is a carved-out legal entity from Bajaj Electricals Ltd. Its EPC segment comprises of Power Transmission & Power Distribution.

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.