Broader indices hit record highs; more than 40 smallcaps gain upto 40%

Market This Week

The broader indices extended their record run but ended on flat note and underperformed the main indices in the volatile week ended July 12.

BSE Large-cap index gained 0.65 percent, Mid-cap index was up 0.15 and Small-cap index shed 0.26 percent.

In this week, BSE Sensex added 522.74 points or 0.65 percent to finish at 80,519.34, while Nifty50 index rose 178.35 points or 0.73 percent to end at 24,502.20.

On July 12, BSE Sensex and Nifty50 touched record high of 80,893.51and 24,592.20, respectively.

On the sectoral front, Nifty Information Technology and FMCG indices rose 3.5 percent each, Nifty Oil & Gas index added 2.5 percent, Nifty Media index was up 1.3 percent. On the other hand, Nifty PSU Bank, Realty, Metal indices shed 2 percent each and Nifty Auto index fell 1 percent.

During this week, Foreign institutional investors (FIIs) extended their buying, as they bought equities worth of Rs 3,843.99 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 5,390.67 crore.

“The markets remained well supported, with minor volatility being induced by profit booking and participants weighing the trend of upcoming earnings season. Towards the close of the week markets trended higher on the back of earnings season getting kicked-off on a positive note , and better than expected inflation numbers in the US," said Joseph Thomas, Head of Research, Emkay Wealth Management.

"The current phase of volatility cannot be ruled out as profit booking may continue ahead of the Budget, that will provide more clarity on the policy continuity,” he added.

The BSE Small-cap index ended flat. HPL Electric & Power, PC Jeweller, Kellton Tech Solutions, Shipping Corporation of India, Rail Vikas Nigam, Sadhana Nitrochem, Tips Industries added between 20-40 percent, while GTL Infrastructure, Vikas WSP, Jaiprakash Associates, Kirloskar Brothers, Puravankara, Paramount Communications, Hitachi Energy India, Patel Engineering Company, Garware Hi-Tech Films, Senco Gold, Schneider Electric Infrastructure lost between 10-22 percent.

Where is Nifty50 headed?

Rajesh Bhosale, Equity Technical Analyst, Angel One:

Moving forward, despite the markets appearing overbought by various measures, there are no signs of weakness, and bulls remain in control, supported by sector rotation.

The ideal strategy would be a stock-centric approach, focusing on the theme of the day for better trading opportunities. For the Nifty, close attention needs to be paid to the 24200 - 24150 zone. If this level is breached, it could signal the first sign of weakness, possibly reaching 24000 and below ahead of the budget.

On the flip side, there is no clear resistance as prices are trading in uncharted territory. However, the golden retracement of the panic fall seen on election result day is around 24610, which is technically significant, along with 24700, seen as key resistance levels. Traders need to monitor these levels closely.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

A long bull candle was formed on the daily chart with minor upper shadow. Technically, this pattern indicates an attempt of upside breakout of the hurdle around 24400-24450 levels. Nifty seems to have completed one day dip recently and started to move up. Similar action was noticed on the daily chart on 24th June and the Nifty continued its upside momentum later.

The short term trend of Nifty remains positive. Having moved above the hurdle of 24400 levels, there is a possibility of Nifty moving towards the next upside target of 24950 levels in the near term. Immediate support is at 24350.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.