Broader indices underperform but these 27 small-cap stocks gain up to 62%

A slide below the support of 25500 could trigger more downside in the market ahead, says Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Broader indices lagged the benchmarks during the week, with mid- and small-cap indices extending losses for a second straight week, declining up to 0.4 percent.

For the week, BSE Sensex index fell 5.89 points at 83570.35, while Nifty50 index rose 11.05 points or 0.04 percent at 25694.35.

Sectorally, Nifty Consumer Durables, Realty, Pharma, Healthcare shed 2 percent each, Nifty Auto index slipped 1.75 percent and Nifty Media index down 1 percent during the week. On the other hand, Nifty PSU Bank, Metal added 4.5% each and Nifty IT index rose 2.8%.

Foreign Institutional Investors (FIIs) extended their selling in this week also as they offloaded equities worth Rs 14,265.58 crore. In contrast, Domestic Institutional Investors (DIIs) provided support to the market, purchasing equities worth RS 16,173.69 crore.

"The Indian equity markets experienced a range-bound trading week, with the benchmark index oscillating within the confines of its 50 and 100-day EMAs. Despite heightened intraday volatility and sharp swings in both directions, the Nifty50 concluded the truncated week on a subdued note, settling a tad below the 25700 mark and registering a marginal weekly gain of 0.04%," said Osho Krishan, Chief Manager -Technical and Derivative research at Angel One.

"The shortened trading week was eventful, influenced by a mix of global and domestic developments. Persistent concerns around trade tariffs and escalating geopolitical tensions continued to weigh on investor sentiment, fostering a cautious market environment. At the same time, ongoing quarterly earnings announcements and key macroeconomic data provided selective opportunities across sectors. Despite these headwinds, the market exhibited notable resilience. The Nifty50 index managed to contain downside risks, holding near the key EMA on the daily charts, underscoring the underlying strength and consolidation phase in the broader market structure."

"Going forward, it remains crucial to closely monitor global developments, particularly those related to trade tariffs and geopolitical tensions, as these factors are likely to act as significant catalysts in shaping near-term market trends. Additionally, several heavyweight constituents of the Nifty are scheduled to announce their earnings over the weekend, the impact of which is expected to be reflected in market action in the forthcoming sessions. In this backdrop, a prudent and disciplined approach is recommended, with market participants aligning their strategies around the aforementioned technical levels," he added.

The BSE Small-cap index declined nearly 0.5 percent during the week. Stocks such as Genesys International Corporation, Nectar Lifesciences, GTPL Hathway, Universal Cables, Tejas Networks, InfoBeans Technologies, Lotus Chocolate Company, United Foodbrands, Amal, Igarashi Motors, Cohance Lifesciences, Globus Spirits and Jindal Poly Films fell between 10–18 percent.

Meanwhile, Wardwizard Innovations and Mobility, JTL Industries, Antelopus Selan Energy, IFCI, Baazar Style Retail, Angel One, Dredging Corporation India, 3B BlackBio Dx, Neogen Chemicals and Antony Waste Handling Cell gained between 15–62 percent.

Where is Nifty50 headed?

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities

Nifty on the weekly chart formed a small bull candle with upper and lower shadow. Technically, this market action signal formation of high wave type candle pattern after a sharp weakness of previous week. This reflects ongoing volatility in the market.

The underlying trend of Nifty remains choppy. A sustainable move above 25900 could open further upside for the next week. However, a slide below the support of 25500 could trigger more downside in the market ahead.

Ajit Mishra – SVP, Research, Religare Broking

The ongoing tussle around the medium-term moving average, the 100 DEMA near the 25,600 zone, is keeping participants cautious. The market is likely to take cues from the earnings announcements of key heavyweights such as Reliance Industries, HDFC Bank and ICICI Bank in early trade on Monday, which could determine the next directional move.

Until then, participants are advised to maintain a selective, stock-specific approach, focusing on sectors showing relative strength such as IT, financials and metals, while adhering to disciplined risk management in the prevailing volatile environment.

Amol Athawale, VP Technical Research, Kotak Securities

We are of the view that the current market formation is volatile and non-directional, and the short-term activity indicating a non-directional trend is likely to continue in the near future. On the downside, 25,500/83000 and 25,400/82700 would act as key support zones, while the daily SMA (Simple Moving Average) at 25,950/84600 and the 20-day SMA at 26,000/84800 would be crucial resistance levels for the bulls.

For Bank Nifty, as long as it is trading above the 20-day SMA at 59,500, the uptrend is likely to continue. On the higher side, it could move up to 60,500. Further upside potential may lift the index up to 60,800. Conversely, if it falls below the 20-day SMA at 59,500, the uptrend would become vulnerable.

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