Broader indices underperform but these smallcaps gain between 10-37%

Market This Week

The broader indices underperformed the main indices in the volatile week ended December 13 as the BSE Mid and Large-cap indices ended with marginal gains, while the BSE Small-cap index was down marginally.

However, BSE Sensex rose 623.07 points or 0.76 percent to end at 82,133.12, while the Nifty50 index gained 90.5 points or 0.36 percent to close at 24,768.30.

On the sectoral front, the BSE Information Technology index rose 2.6 percent, the BSE Telecom index was up 1.7 percent, BSE Realty index rose 0.6 percent. On the other hand, the BSE Energy and FMCG indices shed 1.5 percent each, and the BSE Oil & Gas index slipped nearly 1 percent.

During the week, Foreign Institutional Investors (FIIs) sold equities worth Rs 226.70 crore, while Domestic Institutional Investors (DII) bought equities worth Rs 2880.02 crore. However, in December till now, FIIs purchased equities worth Rs 11,706.89 crore, while DIIs bought equities worth Rs 4,672.49 crore.

"In the last week, the benchmark indices witnessed volatile activity. On a weekly basis, the Nifty ended 0.37 percent higher, while the Sensex was up by 423 points. Among sectors, the Media index lost the most, shedding nearly 6 percent, whereas the Capital Market and IT indices rallied over 2 percent," said Amol Athawale, VP-Technical Research, Kotak Securities.

"Technically, after a short-term correction last Friday, the market bounced back sharply. It not only reclaimed the 50-day SMA (Simple Moving Average) at 24400/80200 but also succeeded in closing above it, which is largely positive. Additionally, it formed a promising reversal formation on daily charts, supporting a further uptrend from the current levels."

"For positional traders, the 50-day SMA at 24400/80200 and 24300/79900 would be the crucial support zones. As long as the market is trading above these levels, a bullish trend is likely to continue. On the higher side, the market could rally up to 25000/82000, with further upside potentially lifting the index to 25200/82600," he added.

The BSE Small-cap index was down marginally. Centum Electronics, Sunflag Iron and Steel Company, Gokaldas Exports, Greaves Cotton, Kitex Garments, Gujarat Industries Power, Indo Count Industries, Varroc Engineering, Vidhi Specialty Food Ingredients, Cantabil Retail India, Permanent Magnets gained between 14-36 percent, while Abans Holdings, EKI Energy Services, Neuland Laboratories, Sapphire Foods India, Jana Small Finance Bank, Gopal Snacks lost between 10-14 percent.

Where is Nifty50 headed?

Jatin Gedia – Technical Research Analyst at Mirae Asset Sharekhan

The Index has formed an Inside Bar candle stick pattern on the weekly charts, thus making the extremes of the previous candle i.e. 24858 – 24009 crucial levels to watch out for the upcoming week.

We expect the pattern to break out on the upside and continue with the positive momentum towards 25125 during the upcoming week. On the downside, 24420 – 24400 is the crucial support zone. As far as derivative data is concerned, 24600 CE saw a sharp short covering and Put writing was witnessed at 24500 – 24400 strikes. The Nifty Weekly PCR witnessed an improvement from 0.70 to 1.04, suggesting a Bullish sentiment. Overall, we expect positive momentum to continue.

Ajit Mishra – SVP, Research, Religare Broking

The final trading session of the week was a roller-coaster ride, with Nifty experiencing sharp swings in both directions before ending at 24.768.30 level nearly 1% higher. The broader indices also saw choppy trading but managed to close flat.

Nifty's strong close near the day’s high suggests the potential for further upside, with confirmation expected above the 24,800 level. We maintain a positive outlook on the IT and banking sectors, recommending selective picks from others. Participants should align their strategies accordingly, prioritizing risk management to navigate market volatility effectively.

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