We do not expect a V shape recovery beyond 11300, rather retesting of the last week’s panic low around 10800 cannot be ruled out.
The sharp rally in most of the mid & small caps has narrowed down the valuation gap between the large caps which could lead to quality getting extra premium at least in the short term.
As many as 96 stocks in the S&P BSE Smallcap index which rallied 10-40 percent in the last five trading sessions
Brokerage houses have come out with their preferred picks in the small & midcap space that makes the job of investors easy but investors should do their homework as well.
Experts say the impact of new SEBI guidelines on large-cap will be minimal, but the buying impact on small-cap stocks will be quite significant.
Shah is of the view that the broader market has undergone healthy consolidation, thus any cool off from hereon should not be construed as negative, instead, it should be capitalized to accumulate quality midcaps.
Bhat is of the view that in the last 2-3 months small & mid-caps have outperformed but from a 10-year perspective, the performance of Nifty Midcap is almost in line with Nifty.
Valuations of small & midcap stocks are looking attractive relative to GDP and money supply, setting the stage for outperformance versus largecap stocks in the coming months, said Morgan Stanley
In terms of valuations, SMID stocks are looking more attractive, setting them up for a re-rating if the growth outlook improves as we think it will, highlights Morgan Stanley.
Kacholia pared stake in two companies which fell more than 30 percent each year-to-date
As of July 24, as many as 25 companies in the Big Bull's portfolio have released their shareholding data for the quarter ended June 30, 2020
Investors will have to be careful to check whether the pandemic has caused any structural damage to the stories of the companies in these sectors, and if yes, stay away from them.
Retail turnover has increased to about 57 percent of the average cash volumes on the exchanges in the first quarter FY21 while daily deliveries have seen a dip.
Out of 160 stocks that hit a fresh 52-week high in July, as many as 32 of them have already rallied more than 100 percent so far in the year 2020.
Much of the rally seen in the small & microcap space could be attributed to attractive valuations and new investors joining the D-Street party, suggest experts.
For the time being, traders are advised to remain short with a stop above 10,755 levels on a closing basis for a target of 10,200
The BSE Smallcap index has rallied about 44 percent and the BSE Midcap index 35 percent since March 24. The Sensex has risen 37 percent and the Nifty 38 percent during the period.
Pharma, consumer, cement and cement products are likely to be the leaders, banks can be performers but retail and malls will continue to struggle.
Broader markets continued to outperform as Nifty midcap and small-cap rose 1.4% and 3.5%, respectively. Sectorally, metal, financials and IT outshone during the week while infra and energy took a breather.
There is hardly any valuation gap between the Nifty50 and Nifty Midcap 100 Index, hence investors should be careful with mid and smallcap stocks, say experts.
On the broader markets front, investors preferred to book profits as the S&P BSE Mid-cap index was up 0.2 percent while the S&P BSE Small-cap index was down 0.21 percent in the same period.
Stocks which are looking attractive are Balkrishna Industries, Trent, Natco Pharma, Deepak Nitrite, MCX, Rallis India and Bajaj Electricals
Bank Nifty and NBFCs has led the upmove as interest moratorium ruling is now postponed to a later date, followed by key sectors like consumer, energy and IT gained traction, Reliance Securities' Rajeev Srivastava told Moneycontrol.
The level of 10,500 on the Nifty will be a very critical level for the market on the upside, and on the downside 9800 will act as a support. The market seems to have good downside support.
The S&P BSE Midcap rallied 1.6 percent while the S&P BSE Smallcap index recorded a rally of 3.6 percent for the week ended June 19 – outperforming benchmark indices in the same period.