Small-cap stocks to buy: Small-caps: Even amidst volatility, getting back on track? 5 small-caps from different sectors with upside potential of up to 30%

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Synopsis

As bulls make a comeback, the small-cap segment is again witnessing increased activity coupled with positive market breadth. So, while being bullish may not be a bad idea, there are two things you need to be aware of as an investor. First, the risks are higher because valuations are still high. Second, when the correction comes, small-caps face a liquidity hit more than any other segment of the street. If you still want to increase exposure to small-cap stocks, do it with money you will not require in the short term. Because, in the short term, small-caps could come under pressure. But in the long term, they are capable of delivering – provided enough filters have been applied while selecting them.

In the last four trading sessions, both the Nifty and Sensex have moved upward – along with improved market breadth. There are clear signs that the bulls are making a comeback attempt. Does this mean the volatility phase is over? Or just that the bias of volatility is towards the bulls? As clear answers are awaited, risks remain. But then who said money can be made in the market without risks? It is just that risks need to be managed. The

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