41 smallcaps fall 10-21% as broader indices underperform

The broader indices remained under pressure during the week and lost upto 2 percent as the investors remained cautious ahead of exit polls and final outcome of general election.

In this week, Nifty50 index shed 426.4 points or 1.85 percent to end at 22,530.70, while BSE Sensex declined 1,449.08 points or 1.92 percent to close at 73,961.31.

Among the broader indices, the BSE Small-cap, Mid-cap and Large-cap indices shed 1.5-2 percent.

The Nifty Midcap 100 index hit fresh all-time high of 53,043.6 but lost 1.4 percent during the week.

Except Nifty PSU Bank, all other sectoral indices ended on negative note with Information Technology index shed 4.2 percent, Nifty Energy index was down 3.3 percent, Nifty Oil & Gas index fell 3 percent, and Nifty FMCG index fell 2.4 percent.

During the week, Foreign institutional investors (FIIs) sold equities worth of Rs 7,754.40 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 14,935.15 crore.

"After touching 23,110 levels, the Nifty index experienced a volatile week, with a weakening bias and the index currently precariously placed near the significant 50EMA zone at approximately 22,380 levels. The index needs a decisive move past the 22,700 zone to improve the bias," said Vikram Kasat, Head - Advisory, Prabhudas Lilladher.

"With the election outcome approaching, high volatility and fluctuations are expected in the coming days. The Bank Nifty is better positioned compared to the Nifty index, maintaining above the important 50EMA level of 48,000-48,300. A decisive breach above 49,000 levels is necessary to improve the bias, while 47,200 levels would be a crucial support zone for the index. Sensex shows support at 73,400 and resistance at 74,400 levels," he added.

The BSE Small-cap index shed 1.5 percent with Schneider Electric Infrastructure, IFB Industries, Sadhana Nitrochem, 63 Moons Technologies, MTAR Technologies, Taj GVK Hotels & Resorts, Sarda Energy and Minerals falling between 15-21 percent.

However, ZF Commercial Vehicle Control Systems India, Waaree Renewable Technologies, RattanIndia Power, Johnson Controls -Hitachi Air Conditioning India, Techno Electric & Engineering Company and Jubilant Industries rose more than 20 percent each.

The Nifty index on a daily scale has formed a homing pigeon candlestick pattern, ahead of the exit polls for the Lok Sabha elections. The 50-DEMA (Days exponential moving average) is placed near 22,390, and the 100-DEMA is placed near 22,000 levels. Thus, 22,390 and 22,000 will act as short-term support points for the index, while 22,800 and 23,110 will operate as significant barriers in the short term.

On the daily charts we can observe that the Nifty consolidated within the range of the previous trading session and has formed an inside bar pattern which makes the extremes of the range 22700 – 22400 crucial levels to watch out for.

A breakout on either side shall lead to a treading move in that direction. In terms of levels, 22420- 22313 is the crucial support zone while 22820 – 22900 is the crucial resistance zone from short term perspective.