Mid-cap and small-cap stocks have been underperforming their large-cap counterparts as of late; however, its important to remember when looking at an index that its a basket of stocks, and by looking at each of the components, we can unearth great opportunities. Yesterday, we did a deep dive into mid-cap stocks for long opportunities, so today, were following that up with a look for similar setups in small caps.

Before we get into individual stocks, I want to highlight the potential failed breakdown that were watching in the index itself. Last week, prices undercut the March lows as momentum diverged positively. If the index can move back above 8,040, it would confirm a failed breakdown and likely be the catalyst to push this market to new all-time highs. The individual names within this index remain mixed, so a neutral stance remains appropriate in the index itself until this range resolves itself.

The first stock on our list is Parag Milk Foods Limited (PARAGMILK.BO), which is resolving a two-year range to the upside. This looks like the start of a new long-term trend; therefore, we want to be buying this breakout above 357 Indian rupees and taking profits near 452 rupees.

[Check out my Technical Analysis course on the Investopedia Academy, where I show you how to recognize the formation of new long-term trends on stock charts and how to develop profitable strategies for buying breakouts.]

The next name on our list is T.V. Today Network Limited (TVTODAY.BO), which broke out of a 1.5-year base last September and has been trending higher since. Prices have been consolidating above our first price target since December and are now ready to continue to the upside. As long as prices are above the May closing lows of 430 rupees, we want to be buying weakness and taking profits at our secondary price target of 577.80 rupees.

Premium Members of Allstarcharts Indiaclick here for a list of the remaining small-cap stocks we want to be buying.

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