Indian markets witnessed a breakout which pushed the benchmark indices above crucial resistance levels in the week gone by. The Nifty50 closed above 11,000 for the first time since September 2018. The index closed at 11,143 for the week ended September 21, 2018.
The index also posted its best weekly gains since November 2018. The Nifty50 rose over 3 percent for the week ended November 30, 2018, data showed.
However, the big trend was seen in the broader market which outperformed benchmark indices for the second consecutive week in a row.
The S&P BSE small-cap index rose 3.9 percent while the S&P BSE mid-cap index rallied a little over 2 percent for the week ended March 8. The big rally seen in the small & mid-caps suggest that the broader market could be on the cusp of a re-rating as the valuations are looking attractive, suggest experts.
The S&P BSE small-cap index which rose over 4 percent in just 4 days saw as many as 154 stocks rallying 10-40 percent which includes names like V-Mart, Astral Poly, Vinati Organics, Sagar Cements, JK Cement, Avanti Feeds, Birla Corporation, Aarti Drugs, Repco Home Finance, Vakrangee, Kwality, Tree House Education among others.
"We feel the froth and overvaluation in the mid-cap space has come off sharply due to the underperformance vis-à-vis Nifty. We feel there is a very high probability of mid & small caps outperforming the large caps in CY19," Teena Virmani, Vice President – Research, Kotak Securities Ltd told Moneycontrol.
"For this thing to fully materialise in CY19, we need earnings recovery and a clear mandate or a single party led coalition government at the Centre. The scope of valuation re-rating remains very high in a host of mid & small caps provided earnings come in line with estimates," she added.
We have collated a list of top 30 stocks out of 154 which have given 10-40 percent return for the week ended March 8:
Markets remained volatile in February but managed to stay afloat above crucial support levels which was the first sign that a breakout was in the offing. The S&P BSE Sensex reclaimed 36,000 while the Nifty50 rose above 10,900 levels during the same period.
Most experts feel that there is more upside in the offing, and traders should stay put with their long positions as the index is on track to hit levels closer to 10,300-10,400.
"The Nifty has managed to see a highest weekly closing after 4 months consolidation which has set the bullish tone for coming sessions. The index continued its bullish momentum as the prices exceeded its previous week's highs and the momentum indicators generated a bullish crossover," Manav Chopra, Head Research- Equity, Indiabulls Ventures told Moneycontrol.
"The index has important weekly support at 10,950-10,900 on the downside which is likely to act as a cushion in case of declines which is also the rising window pattern. The trend has turned positive and the index is likely to test levels of 11,350-11,550 in the near term and one should maintain a buy on dips approach," he said.
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