More than 50 smallcaps rise upto 44% as index hits fresh high

Indian markets ended lower in a volatile week ended February 9 amid interest rate concerns, post Reserve Bank of India as expected unchanged its key policy rates for a sixth consecutive time.

However, broader indices witnessed mix performance, with BSE Small-cap index touched fresh record high during the week, but lost 0.4 percent, while BSE Mid-cap Index ended with 1.6 percent gain.

In this week, Nifty shed 71.3 points or 0.32 percent to finish at 21,782.5, while BSE Sensex fell 490.14 or 0.67 percent to end at 71,595.49.

On the sectoral front, Nifty PSU Bank index added 5 percent, Nifty Healthcare index gained 4.4 percent, Nifty Oil & Gas index rose nearly 4 percent, Nifty Pharma index up 3.9 percent, Nifty Pharma index up 3.6 percent and Nifty Media index up 3 percent.

Foreign institutional investors (FIIs) sold equities worth of Rs 5,871.45 crore, while Domestic institutional investors (DIIs) have provided support by compensating buying of equities worth Rs 5,325.76 crore during the week.

However, in February till now, the FIIs sold equities worth Rs 7,680.34 crore, while DIIs bought equities worth Rs 8,661.41 crore.

“Our domestic market witnessed a lacklustre trading week, wherein the benchmark index remained confined within a slender range of 400 odd points with no clarity in the trend. The favourable global scenario initially boosted the benchmark to inch higher but lacked confidence near the psychological mark of 22000 and enticed profit booking. Amidst all the hustles throughout the week, the Nifty50 index concluded the session a tad below 21800 zone, shedding nearly 0.33 percent on weekly basis,” said Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One.

The BSE Small-cap index touched fresh record high on February 7 but shed 0.4 percent for the week. Automotive Stampings and Assemblies, Visaka Industries, Jayaswal Neco Industries, Schneider Electric Infrastructure, Triveni Turbine, Sanghvi Movers, Indiabulls Real Estate, Parag Milk Foods, Everest Kanto Cylinder, S H Kelkar & Company, Garware Hi-Tech Films, SMC Global Securities, Jaiprakash Power Ventures, Bajaj Hindusthan Sugar, Jaiprakash Associates and EIH rose 20-44 percent.

However, IFGL Refractories, WPIL, Aptech, Balmer Lawrie Investment, Best Agrolife, Mukand, Andrew Yule and Company, BEML and AGS Transact Technologies lost between 15-27 percent.

Where is Nifty50 headed?

Rupak De, Senior Technical Analyst, LKP Securities

Nifty found support at the 20DMA for the second day in a row, on Friday. The trend could weaken if it decisively drops below 21,690. A decisive fall below 21,690 may trigger a correction towards 21,500. On the contrary, if it moves above 21,800, we might observe a recovery in the near term.

Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas:

On the daily charts we can observe that the fall in Nifty has been cushioned by the 20-day moving average (21699) and it has managed to hold and close above it. The daily and hourly momentum indicator has a positive crossover which is a buy signal. On the upside, the Nifty can rise towards 21807 – 21830 where the key hourly moving averages are placed.

Overall, the sideways price action is likely to continue. The range of consolidation is likely to be 21,600 – 22,050.

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