58 Smallcaps see double-digit gains as the overall indexes reach all-time highs

 58 Smallcaps see double-digit gains as the overall indexes reach all-time highs

This week, domestic institutional investors (DIIs) purchased stocks for Rs 4326.47 crore, while foreign institutional investors (FIIs) extended their support by purchasing stocks worth Rs 9,285.11 crore.

In the wake of the BJP's historic victory in three states, robust GDP statistics, positive global signals, and the RBI's decision to hold key rates steady for the fifth time, the market maintained its winning run for the sixth straight week that concluded on December 8. It also reached new record highs. further examined. Investor confidence was strengthened by the dispute and better GDP growth.

During the week, Nifty 50 gained 701.5 points, or 3.46 percent, to end at 20,969.40, while the BSE Sensex gained 3.47 percent, or 2344.41 points, to conclude at 69,825.60. On Friday, the BSE Sensex achieved a record high of 69,893.80, while Nifty topped the 21,000 mark for the first time at 21,006.10.

The larger indexes saw record highs reached by the BSE Small-Cap, BSE Mid-Cap, and BSE Large-Cap indices, which increased by 3.8%, 2%, and 1.3%, respectively.

"Strong domestic GDP growth propelled markets to record highs. Investor confidence was increased by the revised GDP growth estimate for FY21 (6.5% to 7%), even if the RBI maintained the status quo on policy. Deficit in liquidity Taking action, Head of research at Geojit Financial Services Vinod Nair said, "Reversal of SDF and MDFD facilities had a positive impact on the financial position, leading to a 5% gain in Nifty Bank for the week."

"Thanks to robust home sales growth, holiday momentum, and comfortable valuations, the IT, consumer, auto, and real estate sectors all did well. Mid-sized and small-cap stocks maintained their superior performance because of the improving economy, robust second-quarter results, and rising "oil prices."

It may take some time for the RBI to meet its 4% CPI inflation goal, investors should be aware of this. Concerns are being raised about the shortage of Rabi planting and the declining reservoir levels, which might lead to an increase in the price of food grains. This hurt FMCG equities, in contrast to the other sectors' generally good performance. The next data-centric week will highlight significant releases, such as US and Indian inflation figures.

While US inflation is likely to stay steady, inflation in India is predicted to increase. While an expansion in consensus is anticipated, there will also be an increase in industrial and manufacturing output in India. But the result of the much anticipated Fed policy meeting will have a significant impact on how the market feels," he said. Will be ",

Sector-wise, the BSE Power index increased by 13%, the BSE Oil & Gas index increased by 7.6%, the BSE Bank index increased by 5.3%, and the BSE Energy index increased by 5.2%. On the other hand, the BSE FMCG index decreased by 0.3%.

This week, domestic institutional investors (DIIs) purchased stocks for Rs 4326.47 crore, while foreign institutional investors (FIIs) extended their support by purchasing stocks worth Rs 9,285.11 crore.

The BSE small-cap index had a 1.3% increase. Contributions ranged from 20 to 51 percent from Spencer Retail, BCL Industries, 63 Moons Technologies, Inox Wind, Patel Engineering Company, HLV, Sandur Manganese and Iron Ore, New Delhi Television, KIOCL, Ashapura Minechem, and Inox Green Energy Services, Sangam (India).

Conversely, losses rangingd from 10 to 21 percent were sustained by Uttam Sugar Mills, Avadh Sugar & Energy, Balrampur Chini Mills, Dalmia Bharat Sugar & Industries, Bajaj Hindustan Sugar, Triveni Engineering & Industries, Praj Industries, Dhampur Bio Organics, Dhampur Sugar Mills, KDDL, Ugar Sugar Works, Indraprastha Medical Corporation, and Ethos.

Where will the Nifty50 go?

Mehta Equities' Senior Vice President of Research, Prashant Tapase:

Following a day-long pause, buying resumed on Thursday as bullish global signals led benchmark indices to record highs and the RBI increased its monetary policy projection for FY2024 GDP to 7%. The country's central bank is optimistic about its robust development prospects, but it is wary of inflation and has hinted that the high interest rate regime would not be quickly changed, which might cause intraday trading volatility to spike.

The short-term technical picture for the markets is still optimistic despite the very difficult circumstances; the Nifty has support between 20777 and 20521 and resistance between 2112 and 21331.

Senior Technical Analyst at LKP Securities Rupak Dey:

Nifty had incredible gains during the week after a swing high breakout on the daily charts. This implies that market players are becoming more optimistic. Nifty did, however, gain momentum over the week's later part.

In the future, Nifty is probably going to use 21000 as a critical level as call writers have accumulated their largest bets at that strike price. The present upswing seems to be resuming above 21000, with a potential target of 21550. Put writers have established sizable positions at 20900 and 20800 at lower levels; below these points, profit-taking may rise.

Technical Research Analyst Jatin Gedia of Sharekhan by BNP Paribas:

The graphic shows that Nifty has resumed its rise after a two-day correction. The momentum indicators are still out of sync, however, which calls for further caution. Maintaining a long position with a trailing stop loss mechanism is the best trading technique. Important support is located between 20860 and 20800 on the downside, and as the general trend is still bullish, a dip into this region can be seen as a buying opportunity. The upside's immediate barrier is located between 21060 and 21100.

After plunging sharply from intraday lows, Bank Nifty also concluded at an all-time high. We anticipate that next week's encouraging trend will continue. Positively, the next immediate obstacle is estimated to be between 47800 and 48000 in the near term. There is significant support located at 46800–46700.