Small-cap stocks have witnessed a sharp turnaround thus far in the financial year 2026-27. The Nifty SmallCap 250 index has rallied 26 per cent, while the benchmark Nifty 50 gained 8 per cent.
Analysts believe that small-caps are better placed, and could outperform large- and mid-cap peers in the coming period.
READ MORE Against this background, here are 5 small-cap stocks, which Nishchal Jain of Share.Market by PhonePe believes are favourably placed on technical charts.
Small-cap stocks outlook by Nishchal Jain, Quant Researcher, Share.Market by PhonePe.
Zensar Technologies
Current Market Price: ₹532
Zensar Technologies stands out as a textbook example of a momentum shift within the technology sector, having engineered a decisive breakout above its 50-day Simple Moving Average (SMA), says Nishchal Jain, Quant Researcher, Share.Market by PhonePe.
"This structural breakout was validated by a notable volume expansion, confirming institutional accumulation rather than retail speculation. The price action has effectively transitioned its previous multi-week sideways consolidation into a classic higher-high and higher-low sequence on the daily charts," Jain explains.
Structurally, the prior overhead resistance zone between ₹500–₹510 has transitioned into the primary demand floor, acting as a rock-solid support zone on any minor mean-reversion pullbacks. Conversely, the intermediate supply wall and psychological resistance sit near the ₹590–₹600 territory; the clearance of which will clear the runway for an extended primary uptrend.
The upside resistance range mentioned by the analyst translates into a potential upside of nearly 13 per cent for the stock from current levels.
eClerx Services
Current Market Price: ₹1,665
Jain notes that
eClerx exhibits an exceptionally strong chart configuration, characterized by a sudden and aggressive trend reversal pattern.
"The stock recently witnessed a sharp single-day price expansion to clear its intermediate moving averages and break out of a well-defined rectangle consolidation pattern. From a chartist's view, this price action signifies absolute demand absorption at lower levels, where the bulls aggressively overwhelmed overhead supply," the analyst explains.
Jain sees the upper boundary of the rectangle consolidation near ₹1,500–₹1,520 serving as the critical line in the sand for support. On the upside, he expects the near-term resistance target to be defined by the multi-month distribution node at ₹1,750–₹1,800 levels (potential upside 8 per cent).
Greaves Cotton
Current Market Price: ₹264
Greaves Cotton demonstrates a highly compelling trend-reversal narrative on the macro charts, having recently executed a major structural regime shift. The stock has cleanly broken out above the upper descending boundary of a long-term falling channel, signaling the definitive exhaustion of historical selling pressure, says Jain.
More importantly, it has validated a high-reliability Inverse Head and Shoulders bottoming formation by forcefully penetrating its neckline resistance zone, he adds.
Going ahead, the analyst expects the former neckline resistance around ₹230–₹240 to act as a bedrock support zone for the new cycle. Meanwhile, the immediate ceiling and psychological resistance are established near the ₹290–₹300 zone, says Jain.
At current levels, the stock trades roughly 13.6 per cent away from the anticipated resistance zone.
HFCL
Current Market Price: ₹212
The analyst believes that
HFCL stock represents an elite, high-velocity momentum configuration within the telecom infrastructure and AI data connectivity ecosystem, exhibiting an explosive markup phase.
On the charts, the stock possesses a highly robust cushion of dynamic support anchored by its rising 50-day SMA and a dense pocket of previous pivot lows near ₹185–₹195. On the upside, the immediate structural resistance is plotted at the stock's recent multi-year swing ceiling of ₹230–₹240, says Jain.
A clean daily close above this resistance cluster will confirm that the primary bull run remains entirely unhindered, he adds.
Anant Raj
Current Market Price: ₹580
Anant Raj continues to demonstrate premier technical leadership within the real estate space, showcasing a secular uptrend that remains entirely intact.
Jain highlights that the stock recently staged a clean breakout above its 50-day SMA, effectively concluding a minor mean-reversion pullback and triggering a classic bullish flag or continuation cup-and-handle pattern.
Going ahead, the chart geometry points to a dense cluster of demand and structural support around the ₹530–₹540 corridor, says the analyst. On the other hand, he sees resistance placed near the recent psychological threshold of ₹640–₹660, beyond which the technical setup points toward a powerful resumption of its primary legacy trend.
Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Reader's discretion is advised. Analyst Disclaimer Investments in securities are subject to market risks. Read all the related documents carefully before investing. All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Past performance does not guarantee future returns. The securities are quoted as an example and not as a recommendation.
Registration granted by SEBI, enlistment with BSE and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
This article and its images are for informational purposes only and should not be taken as a recommendation.
PhonePeWealth Broking Private Limited is a member of NSE & BSE with SEBI Regn. No.: INZ000302639, BSE RA Enlistment Number: 5887, Depository Participant of CDSL Depository with SEBI Regn. No.: IN-DP-696-2022, Research Analyst– INH000013387 and ARN- 187821. Member id: BSE - 6756 NSE 90226. CIN U65990KA2021PTC146954.
Registered Office Address: Office - 2, Floor 3, Wing A, Block A, Salarpuria Softzone, Bellandur Village, Varthur Hobli, Outer Ring Road, Bangalore South, Bangalore, Karnataka – 560103.
 "Zensar, eClerx among 5 small-cap stock picks with up to 14% upside: Analyst")
