This multibagger Smallcap stock soars over 10 per cent on Monday! Can it save your portfolio?

The stock has been a proven multibagger, having generated over 750 per cent returns to its investors in just 3 years.

On Monday, the domestic markets witnessed sharp sell-off amidst rising Covid cases in India, along with other factors like SVB crisis, Adani fraud allegations, fear of aggressive rate hikes and continuous FII selling. NSE Nifty 50 index has tanked over 1.61 per cent on what can be called as one of the worst days in recent times.   

Despite this, Nahar Poly Films (NSE Code - NAHARPOLY) has soared over 10 per cent amid strong buying interest in the stock. Primarily engaged in manufacturing and export of cotton hosiery and BOPP Films, the company is one of the top players in the flexible packaging industry. The Rs 650 crore market capitalisation company is regarded as a leading supplier of a range of standard and speciality films to some of the best-known packaging film manufacturers and food & beverage brands across the globe.  

After hitting an all-time high of Rs 598 back in April 2022, the stock has corrected over 65 per cent since then. However, strong buying interest in the past few days has lifted investors’ sentiment. In the past 3 weeks, the stock has jumped over 25 per cent, backed by rising volumes.   

Technically, the stock has crossed above its 20-DMA, 50-DMA and 100-DMA during this period with healthy volumes, thus indicating renewed buying interest. The OBV has spiked and is at its peak, thus validating the positive bias. The 14-day RSI (71.59) lies in the bullish territory and shows strong strength in the stock. Overall, with such positive price action and bullish technical parameters, the stock is expected to continue its uptrend in near term. The medium-term resistance lies at 200DMA level of Rs 310, while immediate support is placed at Rs 248 level. Currently, the NAHARPOLY share price trades at Rs 270 level on NSE.   

The stock has been a proven multibagger, having generated over 750 per cent returns to its investors in just 3 years. Interestingly, it is one of the few stocks that shows bullish technical setup in the bearish market. Momentum traders should keep a close watch on this stock in upcoming sessions.