Over the past year, the BSE smallcap fund has seen a gain of around 33%, while the Sensex was up 24%. These results clearly demonstrate that smallcap is outperforming the benchmark. Smallcap mutual funds (MFs) are the ones that invest at least 65% of the corpus in smaller companies. SEBI has defined small companies as firms that are ranked above 250 (251st onwards) in terms of market capitalization.The real challenge lies in identifying promising stocks within the smallcap fund category. There are several approaches to selecting the finest stocks, and ETMarkets has analyzed stocks favoured by smallcap MFs. These stocks are backed by extensive research and are often preferred by major institutional investors. 26 stocks had investments from 10 or more smallcap mutual funds. Most of these stocks have delivered positive returns over the past year. Today's analysis focuses on seven stocks that have gained over 80% price return in the last year and are currently held by more than 10 smallcap MFs as of May '23. (Data Source: ACE MF).

The National Stock Exchange has the potential to become a multibagger stock, boasting a near-monopoly status, 35% plus CAGR in revenues and clean promoters at the helm, says Prabhudas Lilladher. The exchange’s PE ratio stands at 22, versus 50 times for MCX and 37 times for BSE Limited. While the initial public offering remains elusive, the public issue could be launched next year. However, options trading could pose a risk, with close to INR51,000 crore in government revenue generated by the sector. Delayed IPO and a pending Supreme Court case against the NSE are also risks.

Titagarh Rail Systems' shares surged 6% to hit a lifetime high, against the weak market trend and has given investors more than 100% returns YTD. The stock's surge is attributed to the government's focus on rail infrastructure, the robust earnings growth, and the company's transformation into a rail transportation entity. Antique Stock Broking rates the stock as a "buy" with a 54% potential upside from its current price level and a target price of INR 694. Its plan to increase wagon manufacturing capacity to 12,000 wagons p.a. is expected to drive further growth.

The focus remains on geopolitics as U.S. Secretary of State Antony Blinken wraps up his trip to China, while China's cabinet met on Friday to discuss measures to spur growth in the economy, state media reported.

RSI or the relative strength index computes the ratio of the recent upward traction in the stock price movement relative to its absolute price movement. The RSI value ranges between 0 and 100. Herein the StockEdge data takes into consideration the time period of 14 days to compute RSI.

The central government will sell 92.44 lakh shares of Coal India, representing 0.15 per cent of the total equity share of the company, to its eligible employees via Offer For Sale route, the state-owned company informed stock exchanges on Monday.

As the large auto companies make a comeback, even the auto ancillary stocks are coming back on the attention list. We take a look at companies where analysts are projecting further upside in the next 12 months. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

Mid and small-cap indices hit new 52-week high on the back of low inflation and lower raw material prices triggered by a decline in crude oil prices. The Nifty Midcap100 index surged 0.71%, while the Nifty smallcap100 index rose 0.78%. Since April, the Nifty Midcap100 gained 12.5%, while Smallcap100 advanced 20%, attributed to better domestic macroeconomic outlook and improving profitability. However, valuations in most cases have gone to unrealistic levels, and consumption demand remains sluggish. According to Kotak Institutional Equities, BFSI stocks now offer a decent reward-risk balance on the CMP-FV equation.

In Q1 2023, nearly half of the companies in the Nifty 200 index posted profit growth, despite a smaller number achieving a growth rate of over 25% than in the previous quarter. Russia's invasion of Ukraine and rising commodity prices, along with increasing interest rates and inflation, hit earnings through most of the first three quarters of FY23. However, commodity prices began to ease toward the end of the year, with many companies reporting solid sequential and year-on-year performance. Q2 2024 is expected to be less successful than FY23 due to macroeconomic headwinds impacting the tech sector

Suzlon Energy's shares have surged around 80% in the last month on the back of a strong order book accumulated recently and favourable industry tailwinds. The company recently became net-worth positive after a decade and decreased its net debt by 80% YoY to INR1,180 crore in the fiscal year 2022-23. The firm has a big order book and offers a wide range of wind turbines from 225 kW to the recently-launched 3 MW-S414 series.

A study of 13 CEO changes in the past decade shows midsized IT firms usually outperform larger ones on growth and profitability after a leadership change, with turnarounds in IT firms hard to achieve. Analysts say there is a stronger likelihood of mid-sized IT firms, including Mindtree, Birlasoft and Zensar, beating revenue and net profit growth expectations post-leadership change. The Nifty IT index has risen only 7% in the past year amid a slowdown and recession fears. Infosys is the only Indian IT stock with a buy rating from Jefferies, targeting Rs 1,570.

Despite a disappointing performance in the last year, several brokerages predict a 46% rally in Nykaa stock due to the company's balance between growth and profitability. The BPC business of FSN E-Commerce is expected to grow healthily, while beauty is expected to grow faster than the personal care category; the fashion business will sharpen its focus on private labels to reduce marketing costs. Top brokerages Kotak Institutional Equities, Jefferies, and Nomura have recommended a 'Buy' on Nykaa shares. Nykaa's BPC segment's revenue continues to grow and accounts for 70% of the total amount.

Shares of IKIO Lighting surged 9% to INR 441 in Monday's trade on BSE, a day after the stellar debut on NSE, which got listed at INR 393, 37.71% over the issue price of INR 285. Its Rs 607 crore IPO had received a tremendous response from investors, with the issue being subscribed 67 times. The company's consolidated revenue experienced a CAGR of 23% over FY20-22, led by the LED lighting segment, which grew at a CAGR of 24% during the same period.

Shares of Shriram Finance jumped 7% to Rs 1,500 in Monday's trade, following reports of a large block deal. TPG has reportedly sold its entire stake in the firm, but the buyers are yet to be confirmed. During Q4 FY23, Shriram Finance recorded a 20% increase in its net profit at Rs 1,308 crore backed by an over 50% surge in interest income. The consensus recommendation from 27 analysts for the stock is a buy, with an average target price of Rs 1,571, reflecting an upside potential of 7%.

As broader market indices witness minor consolidation, which normally happens when they are close to all time high as some resistance is bound to come. Some stocks have witnessed consistent improvement in their scores. The selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.

When many mutual fund schemes hold a particular stock, investors feel more assured purchasing it. In May 2023, a total of 118 stocks were found to be owned by over 100 mutual fund schemes. The latest mutual fund analysis by ETMarkets has identified nine stocks that have experienced a surge of over 30% in the current fiscal year (FY24), i.e. in less than 3 months, and are held by more than 100 mutual fund schemes as of May 2023. (Data source: ACE MF)

The Futures Short Position Scan performed on Friday revealed Aggressive New Short positions on 7 Nifty50 counters. This is a bearish indicator, as it signifies that the futures OI has increased while the price has decreased. (Source: StockEdge)

"In the next 24-36 months, midcaps and small-caps will outperform the broader market. However, investors need to be selective in what they buy in this space and should look out for companies which would have seen the following developments," Aniruddha Sarkar, Senior Portfolio Manager & Co-Head of Equities at Quest Investment Advisors, said. (Source: PMSBazaar)

The Indian equity market showcased a mixed performance in the last week after the US Fed left rates unchanged as anticipated but hinted at the possibility of more interest hikes later this year. Meanwhile, a host of analysts shared their tech views on particular stocks that can rally up to 18% in the near term. These stocks include IRCTC, ICICI Lombard General Insurance and Bharat Forge.Here is a list of 7 tech picks from various analysts:

Foreign institutional investors (FIIs) are investing heavily in Indian stocks in the first quarter of FY24, with daily average buying totaling around Rs 1,400 crore. Domestic institutional investors (DIIs) have bought stocks worth only about Rs 6,500 crore in the same period. Experts suggest China's weakening economy has driven investors to India instead, with the country's growth potential and standing in the global market making it an attractive alternative. The Nikkei in Japan is up 30% this year and South Korea's Kospi is up 17.5%, while Refinitiv data shows foreign investors have sold $1.71 billion worth of mainland shares in China during May.

HSBC has maintained a buy rating on VRL Logistics with a target price of Rs 800, while Macquarie has retained an underperform rating on Nykaa with a target price of Rs 115. Antique has initiated a buy rating on Titagarh Wagons with a target price of Rs 694, and Citigroup has a buy rating on MGL with a target price of Rs 1,210, while maintaining a neutral rating on Gujarat Gas. VRL is expected to experience an EBITDA margin expansion in FY24, while Nykaa was cited as being evasive on losses in fashion/beauty distribution businesses.

Sensex gains 150 points, Nifty tops 18,850; Shriram Finance rises 4%, HAL 2%; BHEL, Manappuram Finance, Tata Steel are some of the gainers in the morning trade.

In the Nifty200 pack, nine stocks crossed their previous 5-year high value at the close on June 16, suggesting bullishness in counters, according to stockedge.com's technical scan data. Take a look.

A bearish reversal scan on the candlestick screener can help in ascertaining stocks where the trend can change to downward from an uptrend zone. So, here are 4 large and midcap stocks that have established a Shooting Star pattern and signal a bearish reversal. (Source: StockEdge)

ET Now spoke to various experts and here's what they have to recommend for today's trading session. Kunal Bothra has a buy/sell recommendation on SBI and RIL while Nooresh Merani has a buy/sell recommendation on Grasim and BHEL for today's trading session. Check out the targets and stoploss.

Eight stocks, including Indiabulls Housing Finance Company, IEX, and ZEEL are under F&O ban for trade on June 19. The ban is reversed only if the open interest falls below 80%. Meanwhile, the Nifty50 made gains and is expected to reach record highs in the first half of this week, while the BFSI space is participating in the move. Technical experts recommend adding bullish bets in the market. The global market will play a vital role in the next leg of the rally.

On the candlestick screener scan performed on Friday, a bullish reversal pattern helps identify stocks that can see an uptrend from a downward zone in the future. Here are 7 major stocks that have established a Bullish 'Harami Cross' pattern and hint at a bullish reversal in the future. (Source: StockEdge)

From the Sensex pack, Bajaj Finserv, L&T, Titan, UltraTech Cement, UltraTech Cement, Power Grid and HDFC opened with gains, while HUL, NTPC, IndusInd Bank, Wipro, ICICI Bank and Reliance witnessed losses.

Nifty futures on the Singapore Exchange traded 7 points, or 0.04 per cent, lower at 18,891, signaling that Dalal Street was headed for muted start on Monday. Here's a slew of stocks that will be in focus today for various reasons.

Indian markets are expected to consolidate on Monday following mixed global cues. Indian VIX decreased by 2.17% on Friday, and Call writing is seen at 19100, with Put writing at 18800. Options data suggests a broader trading range between 18550 to 19000 zones, and an immediate trading range between 18700 to 18900 zones. Technical Analysts are recommending short-term traders to buy Sun Pharma, Kotak Mahindra Bank, Indian Hotels, Bank of Baroda, BHEL, RIL, SBI, Grasim Industries, and RBL Bank.

The price of this company is moving in a strong uptrend. The stock price was consolidated over the past few sessions and has resumed its upward journey. The latest candle has given a trendline breakout and has formed a bullish Marubozu candlestick. The volume has risen on the breakout candle, which increases the reliability of the breakout.

The markets had a trending day on Friday. The headline index Nifty opened on a strong note, stayed in the green and ended the day with a sturdy rise of almost three-fourths of a percent.

In the NSE list of stocks with a market cap of over Rs 1000 crore, nine stocks crossed above their 200 DMA (Daily Moving Averages) on June 16, according to stockedge.com's technical scan data. The 200-day DMA is used as a key indicator by traders for determining the overall trend in a particular stock. As long as the stock is priced above the 200-day SMA on the daily time frame, it is generally considered to be an overall uptrend.

Benchmark indices closed near all-time highs supported by healthy FII buying. Ramkrishna Forgings' and Kalyan Jewellers' shares are poised to climb higher on bullish technical setups. Ramkrishna Forgings has formed an upward channel pattern on the daily chart and is trading above all important moving averages, while Kalyan Jewellers has witnessed a breakout of a triangle pattern after a long consolidation. Ashok Leyland's shares are also lucrative for long-term investors, as it is forming a triangle pattern and a breakout of an inverse head & shoulders pattern with strong volume was observed.

In the NSE list of stocks, eight stocks with a market cap of over Rs 1000 crore are witnessing Golden Crossovers, according to stockedge.com's technical scan data. Golden Cross is an important technical indicator of bullishness. It occurs when the short-term moving average crosses over the major long-term moving average on the upside. These stocks' 50-day simple moving averages (SMA) crossed their 200-day SMAs on June 16.

Consumer tech companies that went public between late 2021 and early 2022 are witnessing a significant recovery on the bourses, with gains of as much as 46% in the current fiscal. The hype surrounding these companies has now subsided, and analysts and investors have a better understanding of their business. The companies have implemented new strategies, helping stocks rise, and analysts have come out with positive reports, thereby raising the target prices.

Asian shares opened carefully on Monday after their best week in five months. Investors are awaiting China's decision on its rate, PBOC cuts and U.S. Federal Reserve Chair Jerome Powell's statement for rate clues. Nikkei fell 0.5%, after clinching a fresh three-decade high last week, buoyed by the Bank of Japan's decision to leave its setting unchanged. Morgan Stanley's Robin Xing expects an imminent stimulus given second-quarter GDP growth is tracking at 0%. Investors are looking for a number of Fed speakers this week, and markets are pricing in a 70% probability of Fed hiking by a quarter point in July.

Highdell Investment, owned by private equity firm Warburg Pincus, has sold partial stake in Kalyan Jewellers through open market transactions on Friday.

This confidence stems from expectations that despite decade-high interest rates, the world's largest economy will not slip into a recession and the US consumer will remain strong.

The Fed chair will deliver the central bank's semi-annual monetary policy report to the House on Wednesday and the Senate the following day. Separately, three Fed nominees face potentially contentious confirmation hearings.

​Nifty concluded last week with a 1.4% surge, extending its streak of eight consecutive weeks of new highs and record closing highs. The daily chart reveals a breakout within the 18,750- 18,350 range, indicating favorable conditions for continued bullish momentum as the index prepares to touch fresh all-time highs.

To help tide over the repayment requirement, the percentage of royalty from Indian listed entity Vedanta Limited has increased from 2% to 3% starting this year. Also, Vedana Resources Ltd. (VRL) had informed investors earlier this month that it has entered into a similar royalty agreement with Hindustan Zinc and fixed the royalty percentage at 1.7%.

​​Reliance Power and CFM offered upfront cash, while NARCL’s offer is a combination of cash and security receipt. Early this month, CFM ARC improved its offer to `1,220 crore while Reliance Power made a revised offer of `1,260 crore. The offer by the promoter is backed by Varde Partners, which acquired a 15% equity stake in the company by infusing `930 crore in September last year. A Reliance Power spokesperson said: "We are committed to maximise the value for our lenders.

Dabur India’s stock price surged above the 50-week moving average and broke out from a Flag pattern, presenting the opportunity for it to retest its 52-week highs in a month. The recent momentum is pushing the stock towards overbought levels, indicating that consolidation cannot be ruled out. However, the Relative Strength Index is at 69.1, and the MACD is above its center and signal Line, indicating bullishness. Dabur India's stock has started to form a higher high and higher low sequence and given a valid flag pattern breakout, said Kapil Shah, technical analyst at Emkay Global Financial Services Limited.

Indian markets closed higher on Friday, with the S&P BSE Sensex increasing over 400 points, and the Nifty50 closing above 18,800. Buying was seen in banks, capital goods, FMCG, and public sector stocks, while IT and realty stocks experienced selling. Three stocks, Data Patterns, Mazagon Dock Shipbuilding, and IDFC First Bank, either hit a 52-week high or saw a volume or price breakout. Data Patterns closed at an all-time high; Mazagon Dock Shipbuilding saw a Pole and Flag pattern breakout; and IDFC First Bank saw a rally above Rs 70.

Amid buoyant global sentiment, Indian equities ended Friday’s session on a positive note. Nifty at the close climbed 138 points or 1.74%, while Sensex advanced to a record closing high of 63,384, up 467 points. On a weekly basis, Nifty notched gains of 1.41%. Meanwhile, the strength in the broader markets continued too, with Nifty Midcap 100 hitting a new 52-week high in intra-day trade. “The near-term uptrend of Nifty remains intact and one may expect it to register new all-time highs in the coming week. The next upside target to be watched is around 19,000-19,100 levels. Immediate support is at 18,700 levels,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.Here are stock recommendations for Monday:

Interest rates and volatility are two critical factors that impact option prices. Risk-free interest rates lead to higher prices for purchasing options, increasing their cost. Rho, a Greek letter, measures an option's price sensitivity to changes in interest rates. Volatility refers to the degree of variation and unpredictability in an asset's price over time. Vega, another Greek letter, measures the sensitivity of an option's price to changes in the volatility of the underlying asset. Traders utilize vega or volatility in their strategies and create delta-neutral portfolios by pairing long and short options positions to minimize or neutralize overall vega exposure.

Several largecap companies in India, including Hindustan Aeronautics, Bharat Electronics, PI Industries, Titan Company, Britannia Industries, Cholamandalam Investment and Finance Company, and ITC, broke their 5-year highs on June 16th, 2023. This showed their exceptional performance, reflecting a positive shift in market sentiment and increased investor confidence. These milestones also increase institutional investor and trader attention, leading to increased liquidity and trading activity. These companies operate in diverse sectors such as defense, agricultural, consumer goods, food processing, financial services, and conglomerate.

A customised sustainable financial plan is essential for individuals to overcome market risks and maximise the production of income through wealth preservation. Although there is no asset that is risk-free, some are more secure than others. The choice of asset classes should be based on risk appetite and future aims in order to plan out asset allocation comprehensively for sustainable income generation. A finance plan can help in making informed decisions whilst managing assets, allocating wealth and accumulating funds gradually. Creating both long and short-term objectives is important for a sustainable financial plan.

Tax-free bonds and tax savings bonds are investment options that offer tax benefits to investors in India. Tax-free bonds provide completely tax-free interest income, have a generally higher interest rate and no lock-in period, while tax savings bonds provide tax benefits on the principal amount, have a relatively lower interest rate, a 5-year lock-in period and the interest income is taxable. Moreover, Section 80CCF allowed taxpayers to claim deductions for long-term infrastructure bonds, but the option was terminated from FY2012-13. Finally, capital gains bonds offered by government-backed entities provide investors with the ability to invest capital gains from property sales and avoid paying taxes on such profits.