The Nifty SmallCap index has emerged as the top performer in the broader market, climbing 16.8% from a recent low of 14,143 to reach 16,530. This marks the first time since January 2026 that the index is testing its 200-day moving average (200-DMA), currently at 16,550. Kunal Kamble, a Senior Technical Research Analyst at Bonanza, believes that if the index maintains its position above the 200-DMA, it could signal a bullish reversal in market sentiment. He suggests that traders look for confirmation through bullish candles and increased buying activity. Kamble highlights three smallcap stocks—South Indian Bank, Cupid, and MMTC—that he expects to surge by up to 50%. South Indian Bank is currently priced at ₹39.60 and shows signs of strength, with potential to reach the ₹50 mark. Cupid, priced at ₹109, is also displaying bullish momentum, with a target of ₹150 upon breakout. Lastly, MMTC, trading at ₹66.70, is witnessing renewed buying interest and could move toward the ₹100 level with sustained momentum. Investors are advised to confirm these trends before making decisions.