Small-cap PSU stock below Rs 200 with the highest dividend yield among its peers registers a cup pattern breakout; keep it on the watchlist!

The company boasts the highest dividend yield among its peers, with a yield as high as 4.11 per cent.

Key benchmark indices of India opened higher on Thursday, tracking the positive sentiment in global markets. This followed the US Federal Reserve's conclusion of its two-day policy meeting, wherein interest rates remained unchanged, and indications of slower growth and lower inflation suggested the possibility of multiple rate cuts in 2024.

All sectors are currently trading in the green, with Nifty Realty and Nifty IT leading the way, both having surged over 3 per cent on Thursday. One stock that has emerged as a showstopper from the Small-Cap segment is, interestingly, a PSU name – Balmer Lawrie & Company Ltd.

The stock witnessed an increase of more than 8 per cent on Thursday, resulting in the attainment of a fresh 52-week high. The stock initially experienced an open=low scenario, but subsequently gained strength, demonstrating a resolute breakout of the 60-day-long 'Cup'-like pattern. The breakout above the cup-like pattern is supported by a robust volume, exceeding five times the 30-day average volume of 11.33 lakhs shares per day, highlighting broader participation in the direction of the trend.

The daily 14-period RSI is observed rebounding after forming a base at the nine-period average in the super bullish zone, thereby supporting the positive bias. Concurrently, the daily MACD is pointing northward while sustaining above its nine-period average, validating the positive bias in the stock.

The stock has delivered returns of 36.5 per cent and 12.25 per cent in the last one- and three-year periods, respectively. Notably, the company belongs to a diversified industry and boasts the highest dividend yield among its peers, with a yield as high as 4.11 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.