Pressure on mid & smallcaps may continue; 5 stocks which could give up to 12% return

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26 Aug, 2025 12:21

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Mustafa Nadeem Epic Research

The Nifty continues to breach supports and bleed as no respite for bulls is seen in the near term. The index made a bearish belt hold pattern on Monday which clearly mandates the hold of the bears in the short term as upside becomes limited.

A break below short-term moving averages has also triggered negative sentiment for Nifty and other broader indices. With that, negative cues from domestic market internals and global geopolitical stress -- we are cautious with any rise to be utilised to create short positions.

A bearish belt hold is formed which signals a reversal in sentiment in the market from bullish to bearish while the same open and high is now signalling further line of control of bears in the near term.

We have seen a close below short-term moving averages and now immediate resistance is placed at 9,960 – 9,920. These will be critical for Nifty to test as any short-term bounce will be a Dead Cat in nature and further momentum will exhaust on any rise and attract further selling pressure.

We have also broken down below crucial support line on Nifty, the point of inflection will be at 9,940 which will act as resistance. Support in near term is now seen at 9,640 – 9,720.

Since these points are scanned as major swing low in the previous rally which has been observed in July and August. Any retest of these levels will give some bounce back to Nifty.

A breach of these levels will attract further deeper correction in prices while sustainability of these levels will give some breathing space to bulls.

Selling pressure is seen in Midcap and Small cap space along with companies which are exposed to high debt or poor performance in last few quarters in terms of the result.

Here is a list of top five stocks which can give up to 12% return in the short term:

ONGC: BUY| Target Rs180| Stop Loss Rs155| Return 9.7%

Despite a breakdown in the overall market, a rebound is observed in ONGC along with price sustaining the crucial 50 days EMA. Technically, it is in a broader consolidation range of Rs150 to Rs165 and has been in the same range for the past couple of months.

We expect this consolidation to be healthy in nature for momentum on the positive side to continue. Technical indicators also suggest a reversal from an oversold zone.

Bullish Hammer pattern with a positive signal from indicators suggests the stock is coming out for a bullish bias move in coming sessions with the positional target of Rs180.

Titan Company: BUY| Target Rs640| Stop Loss Rs590| Return 6%

The stock had retest its short-term 50 EMA today and reversed with a positive close above it. Technically, after the due correction, it is expected see some bounce back.

Daily Charts also suggests it has worked well on the EMA supports and sustaining the same may push prices higher. The primary trend remains intact with higher top and higher bottom in place and at present, we expect the lows of 595 to be held for a move towards 640.

Tata Communication: BUY| Target Rs715| Stop Loss Rs680| Return 3.9%

The stock has seen the overdue correction on higher timeframes after a smart bullish move. A bullish candlestick pattern on daily chart today makes stock attractive as an investment in short-term given it has seen a breakout.

From previous swing top, it has corrected almost 38.2% and is coming to demand zone of around Rs680 - 690. A bullish candlestick pattern along with close above EMA suggest an upward bias towards Rs715 in near term with a stop loss placed at Rs680.

JSW Energy: BUY for 82| Stop Loss Rs69| Target Rs84| Return 12%

The stock has seen a breakout across timeframes and a recent correction from the previous swing presents an opportunity to enter the dips. It has bounced back from the previous point of inflection, breakout levels, after correcting in last few days.

The stock has sustained the previous breakout range of 70 on the closing basis. A hammer pattern on daily chart today also suggest the bullish bias in coming sessions. We expect this move to expand towards Rs82 - 84 in coming sessions with a stop loss placed at Rs69

Bajaj Auto: SELL| Stop Loss Rs3130| Target Rs2860| Return 6%

Stock on the weekly is showing exhaustion after a recent rally in prices. A reversal pattern on weekly is observed after previous week indecisiveness.

On the daily chart as well we have seen some distribution along with stock failing to breach previous week of resistances at 3150 levels.

Any rise in near term will be an opportunity for momentum players to take a position in the counter move as overdue correction awaits.

Momentum indicators also suggest stock to be in an overbought zone and a due correction is expected. We expect it to test 2860 in the short-term with a stop loss placed at Rs3130.

Disclaimer: The author is CEO, Epic Research. The views and investment tips expressed by the investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.