Stocks to watch: Dont miss action in these quality small cap stocks

The BSE SmallCap index is showing signs of outperformance. Several small cap stocks are seen making fresh 52-week highs while few are seen locked in the upper circuit.

We have identified three small cap stocks that have given a price volume breakout and suggest continuation of positive trend:

1. Shalby: The shares of Shalby were seen trading with a price volume breakout in Wednesday trading session. Shalby, quality stock is available at attractive valuations and has been displaying positive financial trend. The stock has been in intermediate downtrend. However, the upmove in Wednesday trading session indicates a sought of trend reversal with a long green candle, allowing the stocks to close above the 9D SMA and 20D SMA. This indicates bullish price momentum. If we look at the daily chart of Shalby a divergence in RSI is also visible, indicating some upside in Shalby.
2. Borosil: The shares of Borosil gained by more than 9 per cent in Wednesday trading session. A bullish candlestick like chart pattern was formed in Borosil on closing basis on Wednesday. The shares of Borosil gained with a spurt in volumes. The stock made a fresh 52-week high on Wednesday. The stock is trading above the key short-term moving averages and the RSI is near 80 levels, indicating bullishness in the counter. Borosil should be on your watchlist in coming treading session.
3. Zota Healthcare: The shares of Zota Healthcare were seen trading with optimism after a price volume breakout on Wednesday. The shares of Zota Healthcare were seen bouncing from the 20D SMA. A bullish crossover of 9D SMA and 20D SMA was also seen on Wednesday, indicating near term bullishness. On weekly chart , a bullish engulfing pattern is visible indicatig strong buying interest in Zota Healthcare.