Midcap and smallcap stocks have demonstrated significant outperformance in August, with around 50% of Nifty Midcap 150 and Nifty Smallcap 250 stocks logging gains this month, according to ACE Equity data. In contrast, only 36% or 18 out of the Nifty 50 stocks are showing monthly gains, with the average gain in Nifty 50 winners standing at 3.9%. Midcap and smallcap stocks have substantially higher average gains at 7.2% and 8.2% respectively, highlighting clear outperformance by these segments as stock-specific action dominated market proceedings.
Amol Athawale, Vice President – Technical Research at Kotak Securities, has identified three midcap stocks that have given price breakouts and continue to be favourably placed on charts. According to reports from Business Standard, Athawale flagged 'Ascending Triangle' and 'Symmetrical Triangle' breakouts on Meesho and PolicyBazaar weekly charts, indicating potential for further upward movement. The analyst believes that ₹199 could be the trend decider level for the next few trading sessions, with the stock needing to sustain above this level to rally to ₹222.
Meesho has broken out of its 'Ascending Triangle' chart pattern with a strong bullish candlestick, forming a higher bottom formation that indicates the beginning of a new up move from current levels. As reported by Kotak Securities, the stock's current market price stands at ₹208.35, with the analyst believing that ₹199 could be the trend decider level for the next few trading sessions. For the stock to rally to ₹222, it must sustain above the ₹199 level, while a break below this level could lead to further selling pressure.
PolicyBazaar is currently trading at ₹1,837, while Jubilant FoodWorks is at ₹499. According to Kotak Securities analysis, Jubilant FoodWorks is currently witnessing range-bound activity after a promising uptrend rally, but the short-term chart texture remains positive. The analyst flags a breakout pattern on the weekly chart, indicating a likely further uptrend from current levels, with the medium-term structure remaining positive. Key support levels for Jubilant FoodWorks are identified at ₹495 and ₹480, while resistance levels stand at ₹530 and ₹550.
India's leading QSR companies have demonstrated strong operational performance with Jubilant FoodWorks reporting ₹2,569.65 crore revenue with 13.66% YoY growth, Devyani International achieving ₹1,580.52 crore revenue with 16.47% YoY growth, and Westlife Foodworld recording ₹735.64 crore revenue with 11.86% YoY growth. All three companies maintain healthy operating margins, with Jubilant FoodWorks leading at 19.48%, Devyani International at 16.10%, and Westlife Foodworld at 12.86%. The QSR sector benefits from expanding store networks and digital delivery innovations, with companies like Jubilant FoodWorks leveraging its over 2,000 stores and Devyani International operating 2,255 stores across multiple international markets.
