Four small-cap stock picks for the long term

The Smallcap index has been doing very well over the last few months. Indeed, the Nifty Smallcap 250 index has outperformed the benchmark index Nifty 50 so far. We see potential for the Nifty Smallcap 250 (18,496) index to extend the rally towards 24,000-24,500 from here.

So, this can be a good time to play small-cap stocks. We have picked four stocks from the Nifty Smallcap 250 index that look good on the charts from a long-term perspective.

Please note that the stock selection and recommendation given here are purely based on technical analysis. There is always a risk of the view going wrong. So, adhering to the stop-loss is a must in all cases.

The price action over the last two years on the monthly chart indicates a triangle pattern formation. The resistance of this pattern is coming around ₹1,460. Another higher resistance is in the ₹1,580-₹1,600 region. We expect the stock to breach ₹1,600 ideally and rally to ₹2,800 over the next couple of years.

In case the resistance at ₹1,460 caps the upside for now, then an intermediate dip to ₹1,200-₹1,150 is possible in a month or two. The region between ₹1,100 and ₹1,000 is a strong support zone. The bullish outlook will go wrong only if the stock declines below ₹1,000. If that happens, there is a danger of the price tumbling to ₹800.

Buy CDSL shares now at ₹1,415. Accumulate on dips at ₹1,320. Keep the stop-loss at ₹980 initially. Trail the stop-loss higher to ₹1,680 when the price goes up to ₹1,920. Revise the stop-loss higher to ₹2,130 and ₹2,420 when the price touches ₹2,480 and ₹2,640 respectively. Exit the stock at ₹2,780.

The recent bounce from the low of ₹1,266.90 made in April is happening from a long-term trendline support. An inverted head and shoulders pattern is being formed on the weekly chart. A break above ₹1,870, the neckline resistance, will confirm this pattern. That can take Gravita India’s share price higher to ₹2,450, the pattern target. Over a longer time frame of, say, two years, there is potential to target ₹3,200.

Failure to breach ₹1,870 now can trigger a fall to ₹1,550-₹1,500. Key supports are at ₹1,450, ₹1,370 and ₹1,280. The bullish view will go wrong only if the price declines below ₹1,280. If that happens, ₹1,000 and even lower levels can be seen.

Buy Gravita India shares now at ₹1,826 and on dips at ₹1,740. Keep the stop-loss at ₹1,220 initially. Trail the stop-loss up to ₹1,850 as soon as the stock goes up to ₹2,180. Revise the stop-loss higher to ₹2,320 and ₹2,880 when the price touches ₹2,740 and ₹3,040, respectively. Exit the stock at ₹3,160.

A huge triangle pattern has been formed since November 2023. Within that, the movement since November 2025 indicates an inverted head and shoulder pattern. Both these factors strengthen the bullish case for this stock. A strong break above ₹2,100 will confirm both the triangle as well as the inverted head and shoulder patterns. That will trigger a fresh rally to ₹2,750 initially and then to ₹3,750 eventually over the next two years or so.

Key support is in the ₹1,450-₹1,400 region.This bullish view will go wrong if the price declines below ₹1,400. In that scenario, the share price can fall to ₹1,100.

Long-term investors can buy BEML shares now at ₹1,985. Accumulate on dips at ₹1,760. Keep the stop-loss at ₹1,310 initially. Trail the stop-loss up to ₹2,180 as soon as the stock goes up to ₹2,410. Revise the stop-loss higher to ₹2,580, ₹2,880 and ₹3,100 when the price touches ₹2,730, ₹3,050 and ₹3,320 respectively. Exit the stock at ₹3,480.