A 39% increase in over 50 smallcaps occurs when the market recovers

 A 39% increase in over 50 smallcaps occurs when the market recovers

Sector-wise, the BSE real estate index increased by 10%, the telecom index increased by 5%, and the oil and gas index increased by 3.6 percent; however, the auto index finished over 1% down.

The BSE Mid-cap index climbed 2 percent, the BSE Small-cap index gained almost 2 percent, and the Large-cap index jumped 1.2 percent. Broader indexes did better than the major indices.

The week ended November 3 saw the equity market snap a two-week losing streak, closing 1% higher thanks to robust Q2 numbers, substantial GST collections, robust auto sales, a decline in crude prices, and a cooling of US yields following the Federal Reserve's second consecutive week of steady interest rate increases.

The broad-based Nifty gained 0.96 percent to conclude at 19,230.60 during the week, while the 30-pack Sensex gained 0.91 percent to settle at 64,363.78,.

Benchmarks underperformed relative to broader indexes. The largecap index increased by 1.2 percent, while the BSE midcap and smallcap indexes gained 2 percent.

According to Vinod Nair, Head of Research at Geojit Financial Services, the market began the week on a cautious note due to the uncertainty surrounding the US Fed's policy meeting. However, as the week went on, the nervousness subsided and sentiment recovered.

A little drop in oil prices was credited as contributing to the reversal and creating hope for a possible halt in Fed policy. According to him, the market recovered some of its early losses thanks to strong corporate profits and a stable domestic macroeconomic PMI.

According to Vinod Nair, the car industry had difficulties in spite of good sales numbers, while the mid- and small-cap industries performed notably well due to robust demand and a promising economic outlook.

"To obtain additional insights into US economic performance, investors will be closely examining the economic data from the US, including the PMI and nonfarm payroll releases," he said.

Profit upgrades were possible since the corporate profits prognosis for H1 was favorable and the H2 earnings were predicted to be strong as well. "The market is looking forward to positive results from the auto, metal, and major PSU banks next week," he said.

Sector-wise, the BSE real estate index increased by 10%, the telecom index increased by 5%, the oil and gas index increased by 3.6 percent, and the auto index decreased by about 1%.

Throughout the week, domestic institutional investors (DIIs) purchased shares valued at Rs 3,540.25 crore, while foreign institutional investors (FIIs) continued to sell, selling stocks worth Rs 5,522.38 crore.

With contributions from Jaiprakash Associates, SEPC, Greenlam Industries, Apollo Micro Systems, Suven Life Sciences, Jaiprakash Power Ventures, and Jindal Saw totaling more than 20 percent apiece, the BSE smallcap index increased by about 2 percent.

Nevertheless, the following companies had losses of between 10 and 17 percent: Vikas WSP, Syrma SGS Technology, Archean Chemical Industries, Linc, Vimta Labs, Thangamayil Jewellery, Prudent Corporate Advisory Services, Savita Oil Technologies, Gujarat Mineral Development Corporation, Aditya Vision, and Refex Industries.

Where will the Nifty50 go?

SVP of Technical Research at Religare Broking, Ajit Mishra

We restate our cautious assessment of the Nifty and advise holding off on a long-term rebound until there is a clear break above 19,400. Stock-specific possibilities abound, thus traders have to concentrate on picking the right stocks.

Senior Technical and Derivative Analyst at LKP Securities, Kunal Shah

The maximum put writing is 19,200, which might provide the Nifty with significant support. The 19,300 call option has the most open interest, thus one should only be optimistic on Nifty if it closes above its critical 19,300-day moving average.