Nifty Smallcap index crosses 200-DMA; these 9 stocks may rally up to 40%

The Smallcap index seems poised to hit the 10,000-mark.

Shares of Anupam Rasayan India, KEI Industries, Aegis Logistics, Carborundum Universal, IDFC, KEI Industries and few others in Nifty small cap index are scaling uncharted territories despite benchmark indices confronting sell-off in the last month. 

Now, when the Nifty small-cap index has crossed the most crucial 200-day moving average (DMA), it has triggered more upside for all of its constituents. 

Technically, when the stock is making historic peak, with taking any support from its index, the trend is said to be buoyant. However, when the index begins moving along the trend, the momentum starts to build favourable structures for the respective stock. 

The small cap index is climbing higher levels in the overbought category of the Relative Strength Index, implying that momentum to stay elevated unless an aggressive sell-off materialises. The trend has taken a resilient stance, with both strength and momentum supporting the upward bias.

For index, the 200-DMA set at 9,494 becomes the support and any weakness shall observe bullish bias close to this mark. The index is headed in the direction of 10,000 levels. 

Among its constituents, fresh bullish breakout can be seen in KEI Industries, Raymond, KPIT Technologies, Carborundum Universal, and RVNL, as per their respective charts. These stocks are firmly crossing their hurdles, with aggressive volumes  that indicates participation on the upside move. 

Shares of Anupam Rasayan India, IDFC, Aegis Logistics and Cyient are continuing to scale higher ground, with gradual up move in the trend. 

The overall structure of these small cap stocks looks attractive and may further see higher levels, as per their technical charts. 

Here's the technical outlook for these small cap stocks:-

Source: spidersoftware