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Last Updated : Nov 21, 2020 01:38 PM IST | Source: Moneycontrol.com

Small & Midcaps outperform! 45 stocks in BSE500 index rose 10-40%

As many as 45 stocks in the S&P BSE 500 index rose 10-40 percent in just 4 trading sessions. These include MRF, Force Motors, Bharat Electronics, Adani Green, M&M, Tata Motors, etc. among others.

After hitting record highs on the Muhurat Trading day on Saturday, bulls remained in control of D-Street pushing benchmark indices further into uncharted territory, but the big outperformance was seen in the broader markets.

The S&P BSE Sensex rose 0.56 percent while the Nifty50 was up 0.62 percent for the week ended November 20 compared to the 2.8 percent rally seen in the S&P BSE Midcap index, and a 2.6 percent rise in the S&P BSE Smallcap index in the same period.

As many as 45 stocks in the S&P BSE 500 index rose 10-40 percent in just 4 trading sessions that include names like MRF, Force Motors, Bharat Electronics, Adani Green, M&M, Tata Motors, IIFL Finance, Graphite India, and Adani Gas, etc. among others.

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BSE 500 21 Nov

Indian market showed signs of consolidation in the week gone by, but the broader market witnessed some buying interest. The news of the vaccine led to a risk-on rally while increasing cases of COVID-19 infections across the globe including India increased the possibility of lockdown which dampened the sentiment.

“It was a mixed week for the equity markets as the benchmark consolidated in a range but noticeable traction in broader markets kept the participants busy. The news of successful vaccine trials with higher efficacy boosted the sentiment,” Ajit Mishra, VP - Research, Religare Broking Ltd told Moneycontrol.

“However, the updates on rising COVID cases across the globe capped upside and triggered profit-taking in between. The volatility will remain high next week, thanks to the scheduled F&O expiry of November month contracts,” he said.

Mishra expects Nifty to consolidate further next week and the range could be 12,600-13,000. While we’re seeing noticeable interest in the rate-sensitive pack, we expect fresh traction in select counters from the defensive pack i.e. FMCG, IT, and pharma ahead.

In the S&P BSE Smallcap index, there are as many as 76 stocks that rose 10-40% that include names like Jamna Auto, Tanla Platforms, SpiceJet, J&K Bank, Wockhardt,  Adani Gas, and Inox Wind, etc. among others.

What to watch out in the coming week:

Indian market could remain volatile amid the November F&O expiry on 26 November, and news related to rise in COVID infection globally will dampen the sentiment. On the global front, which party gets the majority in the US senate will also impact sentiment, suggest experts.

“For the short term, one needs to keep an eye on the global Covid-19 situation. The focus has shifted back towards rising COVID cases in the US and Europe. With winters looming and Christmas not far away, any continued surge in Covid cases could increase volatility in the world markets,” Abhishek Chinchalkar, CMT Charterholder at FYERS told Moneycontrol.

“Another factor that deserves attention is what party gets the majority in the US Senate. Although Joe Biden has been elected as President and Democrats have won a majority in the House, some uncertainties still exist as to who would get the majority in the Senate,” he said.

Chinchalkar further added that a Republican-controlled Senate would mean a divided Congress, which could reduce hopes of a large fiscal package next year. From a short-term perspective, these two factors are likely to play a key role in influencing the trajectory of the markets.

Technical View:

After showing a sharp weakness from the new highs on Thursday, the Nifty shifted into a consolidation with a positive bias on Friday and closed the day higher by 87 points.

A small body of positive candle was formed with minor upper and lower shadow, which indicates a consolidation movement in the market with positive bias. The Nifty on the daily chart sustained above the immediate short term support of 10-Day EMA at 12680 levels, data showed.

“This action could mean that the short term uptrend status remains intact after a small downward correction and Nifty is expected to bounce up towards new all-time highs,” Nagaraj Shetti, Technical Research Analyst, HDFC Securities told Moneycontrol.

However, on the weekly chart, the Nifty50 formed a small negative candle with a minor lower shadow. This pattern signal a breather type formation at the new highs. But, investors have nothing to worry.

“The near term uptrend status remains intact and upside momentum is expected to continue after this small dip in the market. Hence, one may expect Nifty to move towards the new all-time high of 12963 levels by next week,” says Shetti.

He further added that a decisive/sustainable move above 13000 levels could open the next upside targets of 13500-13600 in the near term. Immediate supports to be watched at 12680-12730 levels.

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.
First Published on Nov 21, 2020 01:37 pm
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