Larger indexes perform better; returns on over 100 small-cap stocks are double digits

Larger indexes perform better; returns on over 100 small-cap stocks are double digits

The Nifty will encounter short-term resistance around 22,620–22,630. Nifty may try to surpass its all-time high of 22,776, according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta, provided the index remains above 22,630.

The Nifty Midcap 100 index increased by 4% to reach a new high of 50,684.50.

During the week ending April 26, the broader indices continued to outperform the major indexes, with the mid and small-cap indices both rising by 4%, and over 100 small-cap companies providing double-digit returns.

Amidst a variety of indications during the week, such as the geopolitical de-escalation, declining crude oil prices, mixed 4QFY24 results, slower-than-expected GDP growth, increased inflation, and increasing US bond yields, the market remained volatile with a bullish bias.

This week, the Nifty50 index concluded at 22,420, up 273 points or 1.23 percent, while the BSE Sensex gained 641.83 points, or 0.87 percent, to end at 73,730.16.

The large-cap index increased 1.5%, while the BSE Small-cap and mid-cap indexes surged 4% and 5%, respectively, outperforming the major indices.

On the other hand, the Nifty Midcap 100 index increased by 4% to reach a new record high of 50,684.50.

With the Nifty PSU Bank index increasing 6.4 percent, the Nifty Realty index rising 4.6 percent, the Nifty Metal index rising 3.5 percent, and the Nifty Pharma index rising 3 percent, all of the sectoral indexes finished the day in the green.

Over the course of the week, domestic institutional investors (DII) purchased stocks worth Rs 20,796.16 crore, while foreign institutional investors (FIIs) sold stocks worth Rs 14,703.72 crore. Nonetheless, as of now in the month, FIIs have sold stocks valued at Rs 36,933.21 crore, while DIIs have bought stocks valued at Rs 42,065.12 crore.

As a result of easing Middle East tensions, falling oil prices, and an improved assessment of the Indian economy thanks to higher composite PMI data from the manufacturing and service sectors, the market saw a surge. Still, a worldwide stock market sell-off occurred on the last trading day due to the unexpected drop in the US GDP and the rise in the US core PCE parice index, according to Vinod Nair, Head of Research at Geojit Financial Services.

In addition to Q4 profits that were generally muted, the local market underperformed its Asian counterparts owing to dismal performance from the IT sector and a few heavyweights in the index. The PSU banks outperformed because of the regulatory environment for private banks established by the RBI and the anticipation of improved asset quality.

"In the near future, we anticipate a consolidation that will cause investors to flee to gold and bonds. Furthermore, the dynamics of the local market will be influenced by the current Q4 earnings reports, while the US FED policy and nonfarm payroll statistics will control the global market," he said.

Over 100 equities had gains ranging from 10 to 45 percent, while the BSE Small-cap index saw a 4 percent increase.

Aegis Logistics, MOIL, Inox Wind Energy, Magellanic Cloud, Kirloskar Industries, Balu Forge Industries, Cochin Shipyard, Vardhman Special Steels, Vimta Labs, GMR Power and Urban Infra, TD Power Systems, and Ester Industries all saw increases of 20–45 percent.

Conversely, the following companies saw losses: Heubach Colorants India, Ramco System, Gujarat State Petronet, Aster DM Healthcare, and Sun Pharma Advanced Research Company.

Where will the Nifty50 go?

Angel One's technical analyst Rajesh Bhosale

The market mostly stuck to the 'buy on dip' approach, keeping a positive tone despite Friday's loss. For now, the 20EMA-corresponding low of 22,300 on Thursday provides immediate support. The crucial support of the bullish gap is located around 22,200.

Keep an eye on these levels, traders, and concentrate on purchasing at lower prices and recording gains at higher ones. In addition, given their impressive performance, a stock-centric strategy is advised.

As the earnings season continues, it is imperative to concentrate on theme movements and be ready for the big event—the Lok Sabha election. Navigating market changes also requires being alert to global indications.

Hrishikesh Yedve, Asit C. Mehta's AVP of Technical and Derivatives Research

The Nifty will encounter short-term resistance around 22,620–22,630. Nifty may try to break its all-time high of 22,776 if the index holds above 22,630; if not, the index may stabilize in the region of 22,000–22,600.

Nifty's short-term support and resistance levels are 22,300 and 22,000 and 22,630 and 22,800, respectively.

Head of Retail Research at Motilal Oswal Financial Services is Siddhartha Khemka.

Following the announcement of US PCE data and many private banks' reports on Saturday, markets will respond on Monday. Because of the current result season and sector rotation at work, we anticipate that market momentum will restart with an emphasis on stock-specific movement. Watch out for Ponawalla, Trent, IDFC First, and ICICI Bank results.

Amol Athawale, Kotak Securities' VP of Technical Research:

From a technical perspective, the market has finished one leg of its surge, and for short-term traders, the critical resistance region would now be 22,620/74,515, which is Friday's high. We believe that the market will probably continue to form a correction as long as it is trading below 22,620/74,515. The market may go below it all the way to the 50-day Simple Moving Average (SMA), which is 22,235/73,225.

Additionally, the market may continue to decline, bringing it down to 22,100/72,800. Conversely, a new uptrend rally may only occur with the elimination of 22,620/74,515. It might rise to 22,775-22900/75124-75500 if it moves over the same. The 20-day SMA, or 48000, may serve as a sacred milestone for Bank Nifty. The attitude may go below this threshold and retest the 47500–47250 or 50-day SMA level.