Despite multiple headwinds, minnows are shining on Dalal Street. This is visible in the action seen in the Nifty Midcap 100 and Nifty Smallcap 100 indices.
Both broader market indices are up by over 3% so far in 2026, beating the barometer Nifty 50 index that has lost 8% and remains on track to end in the red for the first time after a decade of positive annual gains.
The Nifty Midcap 100 index rose to a new peak of 62,704.10 on Wednesday and is set to end higher for a second month straight despite the Middle East crisis. At the same time, the Nifty Smallcap 100 index has surged 20% from March to enter bull territory, signalling strong investor interest in the segment. An index or a stock enters bull territory when they jump 20% or more in a short span of time.
What’s surprising is that this rally comes against the backdrop of massive selling by foreign investors, oil price shock and rising inflation fears that threaten earnings for Indian corporates. Some investors might feel wary of tapping into the broader market rally given the fragile market environment. But if technicals are to go by, then it is time to be greedy and not fearful, as the setup for further upside looks strong.
Technical outlook: Nifty Midcap & Smallcap
According to Anshul Jain, Head of Research at Lakshmishree, both the Nifty Midcap 100 and Nifty Smallcap 100 indices have approached their previous swing highs after a sharp rally over the last few weeks. Therefore, a mild profit-booking reaction or short-term consolidation cannot be ruled out at these levels.
However, he finds the broader trend structure to be bullish. “As long as the indices hold key support zones, the possibility of another 6–8% upside move remains open in the coming weeks,” Jain opined.
Commenting on the index levels, Milan Vaishnav, Founder of ChartWizard FZE (UAE) and Gemstone Equity Research and Advisory Services, said that the Nifty Midcap 100 index achieved a multi-month breakout when it crossed above the 60,500-61,500 resistance zone. Now, the support for this index has been dragged higher to 60500, which signals this momentum would continue, added Vaishnav.
As for the small-cap index, he said the index is still consolidating in a range and has yet to achieve a breakout. “Importantly, certain important lead indicators are showing a strong bullish divergence. Drawing inference from these important technical developments, I feel that the small-cap 100 index is also very likely to stage a breakout. This breakout will happen when it moves past 19,660 levels. While the index is presently below this level, it enjoys elevated chances of a potential breakout,” opined the expert.
Mid & small-cap stock ideas
Experts also shared some stocks to buy from the mid-cap and small-cap space.
Vaishnav said that over the medium-to-long term, stocks like Shilchar Technologies, Max Healthcare, Indian Hotels, Gravita India, etc are likely to do well in the coming months.
Meanwhile, for Jain, Angel One stands out as one of the strongest setups in the broader market space. “The stock is displaying a powerful bullish structure on the weekly charts with strong momentum characteristics and improving price participation. Technically, the setup suggests potential upside in the range of 15–16% from current levels, making it a stock worth tracking closely in the current market environment,” he said.
Disclaimer: This story is for educational purposes only. 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.
