Small-cap engineering stock dips after giving a technical breakout. Should you buy?

Small-cap stock to buy today: Ratnaveer Precision Engineering shares, with a market cap of around ₹1,500 crore, are under the radar of market experts. The reason for this focus is the technical breakout on the weekly chart of this small-cap stock. According to technical experts, Ratnaveer Precision Engineering share price has formed a technical breakout on the weekly chart in the ₹190- ₹195 zone. The iron and steel metal product maker stock has been sustaining above the breakout zone, which qualifies this as an ideal ‘buy-on-dips’ stock for investors.

According to stock market experts, Ratnaveer Precision Engineering's share price has retraced after hitting a new 52-week high of ₹223.75 apiece on the NSE. They advised Ratnaveer Precision Engineering shareholders to hold the scrip, maintaining a stop-loss at ₹170 for the immediate targets of ₹250 and ₹280 over the next one to two months. They said that continued creation of fresh highs highlights growing investor interest in Ratnaveer Precision Engineering, making the stock a key counter to watch in the precision engineering and stainless-steel manufacturing space.

Ratnaveer Precision Engineering's share price outlook

Speaking on the outlook of this small-cap stock, Mahesh M. Ojha, VP — Research & Business Development at KC Securities, said, “The small-cap stock is trading above all SMA days after giving a technical breakout. The company has strong fundamentals, and it is available at an attractive monthly RSI of 65.48. Even though the stock has retraced from its recent highs, investors can still buy the scrip in the ₹205- ₹215 per share range, maintaining a strict stop-loss below ₹178.”

On the suggestion to existing shareholders of Ratnaveer Precision Engineering, the KC Securities expert said, “Existing shareholders may hold the scrip, maintaining a stop loss at ₹170 for the immediate target of ₹250. They can further accumulate, in the case of any big dip in the stock.”

How to invest?

Unveiling the investment strategy regarding Ratnaveer Precision Engineering shares, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, “The stock is looking bullish on the technical chart, but some profit-booking can't be denied. So, a high-risk investor can start accumulating the stock, maintaining a strict stop-loss at ₹170 for targets of ₹250 and ₹280. Those who have a low-risk appetite are advised to wait for the stock to come below ₹200, and start accumulating from ₹190 to ₹175, maintaining a strict stop loss at ₹150 on a closing basis.”

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.