loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Small Caps reclaim All Time High…. getting ready for next bull run!

ICICIdirect Research 28 Aug 2026 DISCLAIMER

Small Caps reclaim All Time High…. getting ready for next bull run!

  • Equity benchmark wrapped the quite monthly expiry week on a flat note, settling at 24140, down 0.5%. However, the real momentum stayed with mid and small caps as both indices marched their northbound journey by clocking fresh All-Time Highs, up ~0.5%.
  • Sector leadership shifted seamlessly to Pharma, Metal while IT staged a strong rebound, while FMCG continued to underperform the benchmark

Technical Outlook

  • Index traded in a narrow range to settle the week around four months rising trendline. From short term perspective, defending last week’s low of ~24000 would keep pullback options open towards 24600. Failure to do so would result in extended correction wherein strong support is placed around 23600.
  • Structurally, past five months trading activity has been confined in entire March month’s trading range (24989-22284). Such prolonged range contractions are rare which systematically set the stage for a directional move. Hence, as long as index holds swing low of 23600, we believe buy on dips structure remains intact
  • Past two-decade historical data suggest that September has been the volatile month. However, such volatility has paved the way for directional move in subsequent months

Small caps entering secular bull run:

  • Smallcap index has logged an impressive ~35% rally off April low and reclaimed it’s all time high after 18 months. The historical data suggest that this is the initial leg of multi-year secular bull run rather than an overextended technical move. We believe that current up move has laid the foundation for a secular up move. Our bullish outlook on the broader market is anchored by following key observations:
  • Major corrections of ~35% or more have historically marked the beginning of a fresh market up-leg rather than the end of the broader bull cycle 
  • Post such correction, uptrends have sustained for subsequent ~20–22 months on average, with each rallies doubling in subsequent year 
  • With current rally (~35%) only five months of its expansion, history suggest that we are just starting the secular up move, where the largest gains are yet to unfold

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere