Anand Rathi stock recommendation: THIS small-cap stock below ₹20 may rise over 20% in one month
Anand Rathi observed that Infibeam has recently broken out above a falling trendline on the daily chart—an important technical development that suggests a shift in trend after a prolonged period of underperformance. The current chart structure also shows the emergence of an Inverse Head and Shoulder formation, a widely followed reversal pattern in technical analysis.
Additionally, the brokerage noted the formation of a bullish AB=CD harmonic pattern, with the reversal zone seen between ₹ 17–18. This zone is being closely watched as a key support area and also serves as a logical stop-loss placement for traders.
Strengthening the bullish case further is a positive divergence in the weekly Relative Strength Index (RSI)—a momentum indicator that often signals a price reversal when RSI trends higher despite falling prices. This suggests improving strength behind the recent uptick in the stock.
Based on its technical analysis, Anand Rathi recommended initiating long positions in the ₹ 19–19.5 range. The stock, currently trading below ₹ 20, offers an upside target of ₹ 23.75, indicating a potential gain of over 20 percent from the lower end of the recommended entry band.
To mitigate risk, a stop-loss below ₹ 17 on a daily closing basis has been advised by the brokerage.
Beyond technicals, Infibeam has also made headlines recently by announcing a plan to raise up to ₹ 700 crore via a rights issue of equity shares. The move is expected to strengthen the company's capital base and support its future growth initiatives.
According to its filing, Infibeam will offer the new shares to existing shareholders, with final details such as pricing and entitlement ratio to be determined by a newly formed Rights Issue Committee. The company said it will proceed with the fundraising upon receiving regulatory approvals, although no specific timeline has been announced.
While the smallcap stock has corrected nearly 42 percent over the past year, it has shown signs of recovery in recent weeks. Infibeam has gained 14 percent in May so far, extending its upward trend from April's 3 percent rise. However, the preceding months were weak for the stock—it fell 9 percent in March, 20 percent in February, and 12.7 percent in January.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Parth Parikh has over a decade of experience in finance and research and currently heads the growth and content vertical at Finsire. He holds an FRM Charter and an MBA in Finance from Narsee Monjee Institute of Management Studies. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
