48 smallcaps give double-digit gain as broader indices climb to fresh high

In line with the main indices, the broader indices also rallied to a fresh all-time high in the second consecutive week ended on September 27, with Large-cap stocks receiving more buying interest compared to mid and small-cap stocks.

For the week, the BSE Small-cap index ended flat, the BSE Midcap index added 0.7 percent, while the Largecap index jumped 1.5 percent.

Indian market extended the gains in the third consecutive week amid positive global markets led by China's recent additional stimulus measures and short-term policy interest rates cut.

For the week, BSE Sensex added 1027.54 points or 1.22 percent to end at 85,571.85, while the Nifty50 index rose 388.05 points or 1.50 percent to end at 26,179.

On September 27, the BSE Sensex and Nifty touched fresh highs of 85,978.25 and 26,277.35, respectively.

All the sectoral indices ended in the green with the Nifty Metal index rising 7 percent, the Nifty Oil & Gas index jumping 5 percent, the Nifty Auto index adding 4 percent, Nifty PSU Bank index adding 3.4 percent.

Foreign institutional investors (FIIs) sold equities worth Rs 3,932.80 crore, however, Domestic Institutional Investors (DII) bought equities worth Rs 15,961.71 crore. However, for the month till now, FIIs bought equity worth Rs 22,403.72 crore and DIIs bought equities worth Rs 24,211.50 crore.

"Equity markets were in an uptrend this week with all the major indices posting gains. The Nifty-50 and the Sensex-30 index moved more than 1% this week, as Asian markets rallied on the back of broad economic support undertaken by China. BSE Midcap and BSE Smallcap indices were also higher, but underperformed the larger index. On a sectoral basis, most of the indices saw healthy gains with BSE Metals, BSE Oil & Gas and BSE Auto being the major outperformers," said Shrikant Chouhan, Head of Equity Research, Kotak Securities.

"Crude oil price remained under pressure with Brent crude hovering closer to USD 70 per barrel mark. China’s equity market saw a sharp rally this week amid China’s central bank announcing measures to stimulate their economy. In the US, the market participant will now focus on the core personal consumption expenditures price index data," he added.

The BSE Small-cap index ended flat for the second consecutive week but hit a new high. Zee Media Corporation, Refex Industries, Sree Rayalaseema Hi-Strength, BF Utilities, Reliance Power, Optiemus Infracom, Vakrangee, Medicamen Biotech, Sequent Scientific, Elpro International, PC Jeweller, Prataap Snacks, Sangam (India) rose between 20-59 percent.

On the other hand, TruCap Finance, Concord Biotech, Fusion Finance, Easy Trip Planners, Kamdhenu Ventures, VST Industries, Magellanic Cloud, Dolat Algotech, S Chand and Company, Hardwyn India, Indian Energy Exchange lost between 11-27 percent.

As happened in the past the market is expected to shift into a range-bound action for a few sessions before witnessing another upside breakout.

Nifty on the weekly chart formed a long bull candle which is the third consecutive candle in the row. Technically this weekly market action is indicating a bullish 'three advancing soldiers' type pattern which signals uptrend continuation.

The near-term uptrend of the market remains intact. Nifty could eventually bounce after the consolidation in the next few sessions. Immediate support is at 25900.

We maintain a bullish outlook and recommend using periods of consolidation or dips to accumulate quality stocks. In the absence of any major domestic triggers, the focus will remain on global markets for direction. On the Nifty index, we anticipate strong support around the 25,900-26,000 zone, with the upside target still set at 26,500.