Nifty SmallCap hits 200-DMA; these 3 stocks can surge up to 50%: Analyst

The Nifty SmallCap index is the top performing broader market index in Tuesday’s trade thus far. The Nifty SmallCap 100 and SmallCap 250 have surged nearly 1 per cent today.

 

The Nifty SmallCap index has rallied as much as 16.8 per cent from its recent low of 14,143 hit on March 23 to Tuesday’s high of 16,530 levels. In the process, the index is now seen testing its long-term 200-day moving average (200-DMA), which stands at 16,550, for the first time since January 8, 2026.

 

Given this background, what should be your trading strategy toward smallcap stocks?

 

Kunal Kamble, Sr. Technical Research Analyst at Bonanza believes that if the Nifty SmallCap 250 index sustains above the 200-DMA, it may trigger a bullish reversal with improving sentiment in the broader market.

 

The analyst reckons that traders can look for confirmation through strong bullish candles and follow-through buying, as this zone could offer a favourable risk-reward setup for fresh long positions.

 

“Momentum indicators like RSI are stabilizing, hinting at easing selling pressure, while volumes show signs of accumulation,” he explains.

 

Among smallcap stocks, Kunal Kamble from Bonanza is bullish on South Indian Bank, Cupid and MMTC. He expects up to 50 per cent upside in these 3 smallcaps.

 

Here’s a detailed technical outlook on smallcap stocks by Kunal Kamble.

 

South Indian Bank

 

Current Market Price: ₹39.60

 

South Indian Bank (SOUTHBANK) is showing signs of base formation after a corrective phase, with the price holding above long-term moving averages like the 200-DMA, indicating underlying strength, says Kamble.

 

The analyst believes that a sustained breakout with rising volumes could trigger fresh bullish momentum, paving the way for an upside move toward the ₹50 zone.

 

Cupid

 

Current Market Price: ₹109

 

The analyst from Bonanza highlights that Cupid stock is showing bullish momentum with price sustaining above key moving averages, indicating a strong uptrend.

 

“Further, multiple indicators suggest a buy bias, supported by positive MACD and overall bullish technical signals. RSI remains in a healthy zone, reflecting strength without extreme overbought conditions,” he explains.

 

Kamble expects an up move toward the ₹150 zone in case of a breakout, thus making it attractive for fresh long positions with trend-following confirmation such as higher-highs and higher-lows.

 

MMTC

 

Current Market Price: ₹66.70

 

MMTC share is witnessing renewed buying interest supported by strong volume spikes and recent sharp price rallies, indicating accumulation at lower levels. The price action suggests recovery from a consolidation phase, with momentum indicators gradually turning positive, notes Kamble.

 

“A sustained breakout above key resistance zones can trigger fresh upside momentum. Traders can consider long positions on confirmation, as improving sentiment and trend continuation may drive the stock toward the 100 levels,” says the analyst. This translates into an upside potential of 50 per cent from current levels.

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not sharechart. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.