In the fiscal year 2027, India’s small-cap segment continued to attract investors’ attention and outperformed broader benchmark indices. While the Nifty 50 has managed to achieve only around 4% growth so far this fiscal year, the Nifty Smallcap Index has risen by over 18%. This reflects strong performance in the small-cap segment of the market.
Against this backdrop, Bajaj Broking has identified three Smallcap stocks that could offer attractive returns in the coming months. According to technical analyst Pabitra Mukherjee, Allied Blenders and Distillers (ABDL), NBCC (India), and Saajility have formed bullish chart patterns and could potentially yield returns of up to 15 percent from their current levels.
Allied Blenders & Distillers Shows Strong Technical Strength
One of India’s leading alcoholic beverage companies, Allied Blenders and Distillers, has seen renewed buying pressure on its shares recently, after the 200-day Exponential Moving Average (DEMA) was tested as a strong support level. The stock is currently trading around ₹544 per share, indicating that it may be recovering from its recent declines.
According to Bajaj Broking, the stock has formed a positive technical pattern after finding support around the previous breakout level of ₹509. One of the key indicators supporting a bullish outlook is the formation of a “golden crossover”, where the 50-day DEMA crosses above the 200-day DEMA. Technical analysts generally consider this pattern as a strong signal of long-term upward momentum.
The brokerage firm expects that the stock price will gradually rise towards ₹622 over the next few months. This target level also coincides with a significant retracement level and an important trendline resistance, based on the previous high levels reached in February, April, and May 2026.
For traders and investors looking to capitalise on potential price increases, Bajaj Broking recommends buying Smallcap stocks in the ₹544–₹554 range, with a stop-lossat around ₹513. The recommended investment period is six months.
Market experts believe that if the buying momentum continues and the overall market conditions remain favorable, Allied Blenders could emerge as one of the best-performing stocks in the Smallcap segment during the second half of 2026.
NBCC Breakout Signals Fresh Upside Potential
The government-owned construction and project management company, NBCC (India), has also attracted attention after experiencing significant technical improvements. The company’s shares have recently broken through the inverted head and shoulders pattern on the chart. This pattern is often considered a reliable indicator of a trend reversal.
During the upward movement, NBCC’s shares were supported by strong trading volumes. According to Bajaj Broking, the volume of trades was more than twice the average level. This indicates that investors have strong interest and confidence in the stock’s future prospects.
The brokerage firm expects that NBCC’s price will rise towards the ₹115 level in the coming months. This target is based on the effects of the inverted head and shoulders pattern, as well as the significant retracement level that corresponds to the previous decline from ₹126 to ₹77.
Currently, the stock is trading around ₹103-₹104 per share. Analysts have identified the range of ₹95–₹97 as a key support level. They suggest that investors should set a stop-loss order around ₹96 to minimize the risk of further declines.
NBC continues to benefit from strong government spending on infrastructure, urban redevelopment projects, and public-sector construction initiatives. These factors, combined with recent technological advancements, support a positive outlook for the stock’s performance.
In India, continued investment in housing, smart cities, railway modernization, and public infrastructure is leading investors to pay increasing attention to companies involved in infrastructure development. NBC is one of the key companies that will benefit from these long-term trends.
Sagility Rebounds From Key Support Levels
Sagility, a business process management company focused on the healthcare sector, has caught the attention of Bajaj Broking. The company’s shares have remained stable within a range of ₹38 to ₹55 over the past fifteen months, indicating a long-term pattern of stability.
Recently, the stock has started to rise from the lower levels of this range, indicating a potential new upward trend. Technical analysts view such increases positively, as they often signal an increase in demand after a period of stability.
According to Bajaj Broking, Saucity has established a strong foundation, above the 50% retracement level of its previous rally, which was between ₹36 and ₹45. This development indicates that the stock may be ready for another upward move.
The brokerage has set a target price of ₹46.60 for the coming months. This target represents an important resistance level and corresponds to a 50% revaluation of the stock’s previous decline from ₹58 to ₹36.
Investors interested in investing in Saajility can purchase shares in the range of ₹40-₹41. They can also set a stop-loss order at around ₹37.50. According to technical analysts, the risk-reward ratio currently seems favorable.
Healthcare outsourcing and digital transformation are continuously driving up demand in the global healthcare sector. Companies like Saegility can take advantage of these growing industry opportunities and positive technological trends.
Smallcap Momentum Remains Strong but Investors Should Stay Cautious
In the fiscal year 2027, the strong performance of India’s small-cap sector reflects growing investor confidence and increased participation across various sectors. Better revenue prospects, favorable economic conditions, and rising domestic investment have all contributed to the upward trend of many Smallcap stocks.
However, market experts also warn that Smallcap stocks are more volatile compared to large-cap companies. Technical indicators can help identify potential opportunities, but investors should always consider their risk tolerance, investment horizon, and overall portfolio allocation before making decisions.
The three stocks highlighted by Bajaj Broking—Allied Blenders and Distillers, NBCC, and Sajiliti—have shown promising technical indicators. If current trends continue, they could deliver double-digit returns. However, investments in the stock market are subject to market risks, and future performance cannot be guaranteed.
For investors who are looking for opportunities beyond the standard indices, it might be worthwhile to pay close attention to these Smallcap stocks in the months to come. As always, it’s advisable to consult with a qualified financial advisor before making any investment decisions.
