D-Street bulls drive more than 60 smallcaps to deliver in double digits

The market stayed in the green for the second straight week, braving volatile trade, mixed global cues after hawkish comments from Fed chair Jerome Powell, and better corporate earnings in the September quarter.

The week ended November 10 marked the last session of Samvat 2079. The benchmark BSE Sensex and the Nifty50 gained 10 percent each, hitting fresh all-times highs of 67,927.23 and 20,222.45.

In Samvat 2079, the BSE SmallCap, MidCap and LargeCap indices added 34 percent, 31 percent and 8 percent, respectively.

In this week, the BSE Sensex gained 0.84 percent or 540.9 points to close at 64,904.68, while Nifty50 added 194.75 points or 1 percent to end at 19,425.35. Among broader indices, the BSE LargeCap index added 1 percent, BSE MidCap index 2.6 percent and the BSE SmallCap index 2 percent.

“Reflecting the mixed global sentiment on account of a more-than-expected fall in Chinese exports, highlighting a continued slowdown in global trade, the Indian market is mired to a range-bound trend. The Nifty index was not able to shoot past the key 19,500 level. Though cues from the Fed chair’s speech have reduced the likelihood of a rate hike in the near term, leading to an ease in US treasury yields and calming the market,” said Vinod Nair, head of research at Geojit Financial Services.

However, headline inflation remains above the US central bank’s target. While FII (foreign institutional investor) selling has moderated, inflows continued to be muted on concerns of an elevated interest rate and a global slowdown, he pointed out.

“Midcaps and smallcaps are back in favour after the recent fall, led by retail activities and good corporate results. Week ahead, focus will be on inflation data from the US and India. While India’s October inflation is expected to ease to 4.8 percent from 5 percent, the US inflation is expected to remain steady, ” Nair said.

On the sectoral front, the BSE Healthcare index rallied 4 percent, BSE Capital Good index added 3 percent, BSE Metal index 3 percent, and BSE Realty index gained 2.6 percent.

FIIs continued to sell off Indian equities as they pulled out Rs 3,105.27 crore, while domestic institutional investors (DIIs) picked up equities worth Rs 4,155.23 crore.

The BSE SmallCap index added 2 percent with Neuland Laboratories, IFGL Refractories, CarTrade Tech, Apollo Micro Systems, Ador Welding, Jaiprakash Power Ventures, Sasta Sundar Ventures, Tracxn Technologies, Techno Electric & Engineering Company, Arihant Superstructures and KPI Green Energy adding 20-40 percent.

On the other hand, Gujarat Themis Biosyn, Navneet Education, Best Agrolife, GOCL Corporation, Elin Electronics, Krsnaa Diagnostics, MTAR Technologies, Vascon Engineers, Pricol, Sadhana Nitrochem, Mishra Dhatu Nigam, Renaissance Global and Omaxe lost 10-17 percent.

Where is Nifty50 headed? Let’s hear out from experts.

Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services

The Nifty ended the Samvat 2079 on a positive note despite several global challenges. As we get into Samvat 2080, we believe markets would continue its outperformance on the back strong earnings and healthy economic outlook.

We expect the market to start Samvat on positive note and remain in a broader range with sectorial rotation. Investors would watch for India CPI inflation that would be release on Monday.

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas

The Nifty opened gap-down, however, the dip was bought into, and it closed with gains of around 30 points. We can observe that the Nifty has held on to the support zone of 19,310 – 19,270, which coincided with the gap area and the 40-hour moving average. Buying interest emerged from that zone indicating that unless that is breached on the downside, we can expect the momentum to continue. The hourly momentum indicator has triggered a positive crossover from the equilibrium line indicating that the consolidation has matured, and it has started a new cycle on the upside. A decisive close above 19,500 shall lead to a further extension till 19,690. Broad market outperformance is likely to continue.

Nagaraj Shetti, Technical Research Analyst at HDFC Securities

The Nifty, as per the weekly chart, formed a small positive candle, placed at the hurdle of 19,450-19,500 levels as per the concept of change in polarity. A decisive breakout above 19,500 can renew buying enthusiasm towards 19,800 and higher in the near term. Any weakness from here shall find support around 19,250-19,300.

Ajit Mishra, SVP of Technical Research at Religare Broking

We are seeing rotational buying across heavyweights, which is helping the index to hold strong amid consolidation. Markets are now awaiting fresh triggers and they could probably be from the global markets. Traders should stay focused on stock selection and maintain a positive bias until the Nifty breaks 19,200.

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