Nifty reaches a new high; 38 Smallcaps see gains of up to 33%

 Nifty reaches a new high; 38 Smallcaps see gains of up to 33%

Nifty reaches a new high; 38 Smallcaps see gains of up to 33%

The short-term technical picture for the Nifty is still positive, according to Prashant Tapse, Senior VP (Research), Mehta Equities, with resistance above 20500–20751 and support at 20089–19909.

November saw increases of 5.5% for the Nifty50 and almost 5% for the BSE Sensex.

The Indian equities market saw strong gains throughout the brief week and carried on its winning run for a fifth straight week. As a result, in the week's last session, the Nifty 50 tested a new record high of 20,291.55, driven by both good domestic and global data prints. assisted in doing. As worries about more interest rate increases by the Fed and ECB subsided, FIIs offered assistance.

Nifty 50 gained 473.2 points, or 2.39 percent, to settle at 20,267.90, while the BSE Sensex gained 2.29 percent, or 1,511.15 points, to conclude at 67,481.19 for the week.

November saw increases of 5.5% for the Nifty50 and almost 5% for the BSE Sensex.

Broader indexes fared better than the core indices, with the BSE Mid-Cap, Large-Cap, and Small-Cap indices increasing by 3%, 2.6%, and 2%, respectively.

This week, the market broke significant resistance levels and closed solidly over the 20,000 barrier, setting new highs. As a result of rising hopes that the ECB would reduce inflationary pressures, global markets were optimistic. Strong Q2FY24 GDP statistics and a noteworthy increase in industrial activity gave the Indian economy a big boost and improved the growth outlook considerably. Head of research at Geojit Financial Services Vinod Nair said that the IPO market remained vibrant, "Highlighted by Tata Technology's monumental listing, which boosted investor confidence in risky assets."

The whole market did better than small and midcaps, which exhibited resiliency and no symptoms of exhaustion. Investor confidence in government expenditure and rising consumer spending, fueled by lower inflation, is expected to support GDP in H2FY24. OPEC+ production curbs did not stop the decline in oil prices. An other factor that helped improve market attitude toward the current central administration was the much anticipated exit polls.

Investor attention will be mostly focused on the publication of service PMI data from China, India, and the United States in the next week. Expect the status quo at the RBI policy meeting next week, although the growth forecast might improve."The November FII pullout, which was done gradually, shows that the good momentum is still there."

Every sectoral indicator had a gain at the finish, with the BSE Metal index climbing 3%, the BSE Capital Goods index rising 3.6%, and the BSE Oil & Gas and Power index rising 5.7%.

This week, the market saw a rebound in FII purchases, with purchases totaling Rs 10,593.19 crore, while domestic institutional investors (DIIs) made purchases of stocks valued at Rs 4,353.55 crore.

Aster DM Healthcare, Sutlej Textiles & Industries, Marksons Pharma, Shalimar Paints, NBCC (India), Genesis International Corporation, Tanfac Industries, Kesoram Industries, 63 Moons Technologies, Navkar Corporation, and Datamatics Global Services led the pack as the BSE Small-Cap index increased by 2%. Additionally, India Cements is expanding by 15–32%.

Conversely, the following companies experienced losses of 7–10%: Ather Industries, TVS Srichakra, RatanIndia Power, Vikas WSP, Texmaco Rail & Engineering, DB Corp, Cartrade Tech, Jaiprakash Associates, Jaiprakash Power Ventures, SML Isuzu, Thomas Cook (India), PDS, Honda India Power Products, The Bombay Dyeing, Himatsingka Seed, and Dilip Buildcon."

Where will the Nifty50 go?

Senior Technical Analyst at LKP Securities Rupak Dey:

The Nifty is still rising as long as bulls are in charge. It is likely that the weekly time frame will witness a consolidation breakthrough, opening the door for more index gains.

The weekly RSI showed a bullish crossing, indicating that sentiment is still strong. Support at lower levels is found around 20,200; as long as the price stays above this level, any loss may be seen as a buying opportunity. Resistance is predicted to be between 20,450 and 20,500 at higher levels.

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

The benchmark Nifty reached a fresh record high due to the purchasing frenzy sparked by favorable European market indications and FIIs' renewed confidence. In an unpredictable global economy, India continues to be a bright light thanks to recent data points like robust GDP and manufacturing figures as well as outside influences like the drop in US bond rates that are supporting the market.

The good news is that the Nifty's short-term technical picture is still positive, with resistance located around 20500–20751 and support located at 20089–19909.

SVP of Technical Research at Religare Broking, Ajit Mishra:

The index is rising thanks to sequential purchasing in important sectors, and the Nifty is now aiming for 20,500. Positive international signals, particularly the success of US markets, are contributing to the optimism in addition to local considerations. Therefore, we advise sticking with the "buy on dips" strategy but putting more emphasis on stock selection.