Broader indices continued to outperform the main indices in the week ended April 26 as mid and smallcap indices jumped 4 percent each with more than 100 small-cap stocks giving double-digit return.
During the week, the market remained volatile with positive bias amid mixed cues including geopolitical de-escalation, falling crude oil prices, mixed 4QFY24 earnings, weaker-than-forecasted GDP growth, higher inflation and rising US bond yield.
This week, BSE Sensex gained 641.83 points or 0.87 percent to end at 73,730.16, while Nifty50 index finished at 22,420, rising 273 points or 1.23 percent.
The broader indices outperformed the main indices with BSE Small-cap and mid-cap surging 4 percent each and the Large-cap index rising 1.5 percent.
However, Nifty Midcap 100 index gained 4 percent to touch fresh all-time high of 50,684.50.
All the sectoral indices ended in the green with Nifty PSU Bank index surging 6.4 percent, Nifty Realty climbing 4.6 percent, Nifty Metal index rising 3.5 percent and Nifty Pharma jumping 3 percent.
During the week, Foreign institutional investors (FIIs) sold equities worth Rs 14,703.72 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 20,796.16 crore. However, for the month till date, FIIs sold equities worth Rs 36,933.21 crore and DIIs purchased equities worth Rs 42,065.12 crore.
"Relief from Middle East tensions, coupled with a correction in oil prices, and a bolstered Indian economic outlook fuelled by elevated composite PMI data from manufacturing and service sectors, propelled a market rally. However, the unexpected decline in US GDP and a surge in the US core PCE parice index triggered a global stock market downturn on the last trading day," said Vinod Nair, Head of Research, Geojit Financial Services.
“The domestic market lagged its Asian peers as Q4 earnings remained largely subdued, with weak results from IT and a few index heavyweights also disappointing. The expectation of an improvement in asset quality and the RBI's regulatory ecosystem for private banks led the PSU banks to outperform.
"We expect a consolidation in the near term, leading investors to seek refuge in bonds and gold. Additionally, upcoming US FED policy, US nonfarm payroll data will dictate the global market, while the ongoing Q4 earnings reports are poised to influence the domestic market dynamics," he added.
The BSE Small-cap index gained 4 percent with more than 100 stocks gained between 10-45 percent.
Kirloskar Pneumatic, Ester Industries, Tejas Networks, Aegis Logistics, MOIL, Inox Wind Energy, Magellanic Cloud, Kirloskar Industries, Balu Forge Industries, Cochin Shipyard, Sterling and Wilson Renewable Energy, Vardhman Special Steels, Vimta Labs, GMR Power and Urban Infra and TD Power Systems jumped 20-45 percent.
On the other hand, Aster DM Healthcare, Sun Pharma Advanced Research Company, Gujarat State Petronet, Ramco System, Heubach Colorants India lost between 10-31 percent.
Where is Nifty50 headed?
Rajesh Bhosale, Technical Analyst, Angel One
Despite Friday's setback, the market mostly adopted a 'buy on dip' strategy, maintaining a bullish undertone. Going ahead, immediate support is seen around Thursday’s low of 22,300 coinciding with 20EMA, followed by the pivotal support of the bullish gap around 22,200.
Traders are advised to monitor these levels and focus on buying on dips while booking profits at higher levels. Additionally, a stock-centric approach is recommended considering their strong performance.
With the earnings season ongoing, it's crucial to focus on thematic moves and brace up for the mega event i.e. the Lok Sabha election. Vigilance on global cues is also essential in navigating market movements.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta
For the short term, 22,620-22,630 will act as resistance for the Nifty. If the index sustains above 22,630, Nifty could attempt to break its all-time high of 22,776; otherwise, the index might consolidate in the range of 22,000-22,600.
Short-term support levels for Nifty are at 22,300 and 22,000, while resistance levels are 22,630 and 22,800.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services
Markets on Monday will react to US PCE data and results of several private banks which will be announced on Saturday. We expect market momentum to resume with a focus on stock-specific action due to the ongoing result season and sector rotation at play. Results to watch out for ICICI Bank, IDFC First, Ponawalla, Trent.
Amol Athawale, VP-Technical Research, Kotak Securities:
Technically, the market completed one leg of rally and now 22,620/74,515 (last Friday high) would be the crucial resistance area for short-term traders. We are of the view that, as long as the market trading below 22,620/74,515 the correction formation is likely to continue. Below the same, the market could slip till 50-day SMA (Simple Moving Average) or 22,235/73,225.
Further, the downside may also continue which could drag the market down to 22,100/ 72,800. On the flip side, a fresh uptrend rally is possible only after the dismissal of 22,620/74,515. Above the same, it could move up to 22,775-22900/75124-75500. For Bank Nifty, 20-day SMA or 48000 could act as a sacrosanct level. Below the same, the sentiment could change, and it could retest the level of 47500 -47250 or 50-day SMA.
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.
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