Moneycontrol
Last Updated : Nov 03, 2018 11:36 AM IST | Source: Moneycontrol.com

Sensex rallies 5% ahead of Diwali, 148 stocks rise 10-70% in 5 days

The midcap and smallcap indices rose 7 percent and 6.4 percent, respectively, but the real action was seen in individual stocks which gained 10-70 percent

Kshitij Anand @kshanand

The Sensex rallied nearly 1,700 points, or 5 percent, for the week-ended November 2 and the Nifty rose 523 points, or 5.2 percent, but the real action was visible in the small- and midcap space. D-Street registered its biggest weekly gain since May 2016.

Positive global cues, ease in trade tension between the US and China, earnings from India Inc, fall in crude oil prices that are now hovering around $73/bbl and appreciation in the rupee boosted sentiment on D-Street.

The broader market outperformed benchmark indices for the week-ended  November 2. The midcap and smallcap indices rose 7 percent and 6.4 percent, respectively, but the real action was seen in individual stocks which gained 10-70 percent.

As many as 148 stocks in the BSE 500 rallied 10-70 percent in just five trading sessions. These include: Escorts, NCC, Dewan Housing Finance, BEML, KEI Industries, V-Mart Retail, Adani Power, Reliance Communications, Bombay Dyeing and PC Jewellers.

Here is a list of 23 stocks from the BSE 500 index that rallied 20-70 percent this week:

111

The Nifty bounced back from 10,000 levels as crude prices fell 6 percent this week in line with the increase in supplies and likely waiver for India from Iran sanctions. Banks and financials witnessed short covering due to a fall in yields, while improved automobile sales in October attracted investors, experts said.

“Despite India Inc reporting mixed Q2 earnings till date, the Nifty gained 5.2 percent this week supported by a fall in oil prices, stability in bond yields and strengthening of the rupee. Expectation of a softening in trade tensions between the US and China and positive cues from global markets supported sentiment,” Vinod Nair, Head of Research at Geojit Financial Services, said, adding that the rally in the Nifty can get extended to 10,600-10,700 levels.

As many as 235 stocks in the BSE Smallcap index rose 10-70 percent in just five trading sessions. These include: Edelweiss Financial Services, SREI Infrastructure Finance, Liberty Shoes, Repco Home Finance, Venky’s, Siti Network, and Dhanlaxmi Bank.

As many as 27 stocks in the BSE Midcap index rose 10-40 percent. These include: Marico, Reliance Capital, United Breweries, Torrent Power, L&T Finance Holdings, Canara Bank, Union Bank of India and Reliance Communications.

Technical outlook

After forming a near-term bottom at 10,000 last week, the Nifty managed to stage a smart bounceback, rallying over 5 percent. In the process, it closed above 10,500, which is a positive sign for the bulls.

Technically, the Nifty has crossed its swing high of 10,441. It also surpassed 61.8 percent retracement of its recent fall, which stood at 10,440. On the way up, it managed to overcome the upper end of its reverse falling channel as well, with experts now placing the next target at 10,700.

"Technical observations suggest the bulls are having the upper hand and domination is likely to continue going forward. In terms of wave structure, with its November 2 move, the index has taken the form of an impulse on the upside. This rules out the possibility of a wedge formation. The index seems to be attempting an Expanded Flat pattern, which means it can see a deep retracement of the entire fall. On the upside, the swing high of 10,710 will be the key level to watch out for," Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas, told Moneycontrol.

He added that 0nce 10,710 is taken out, the index can head towards 11,000-11,140 in the short term. On the flip side, 10,440-10,400 shall now act as a key support zone.
First Published on Nov 3, 2018 11:32 am
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