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Nifty50 Over 100 smallcaps jump 10-59%, market jumps 2% on supportive cues

October 22, 2021 03:37 PM

Nifty50 Over 100 smallcaps jump 10-59%, market jumps 2% on supportive cues
In the last week, BSE Sensex rose 1293.48 points (2.20 percent) to close at 60,059.06, while the Nifty50 added 363.15 points (2.07 percent) to close at 17,895.20 levels.

It is going to be crucial for Nifty50 in the short-term scenario to sustain above the 17,770-17,800 support zones. If the market is able to sustain the said level, it can witness higher levels of 18,000, said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.

Market recovered all the previous week’s losses and jumped 2 percent on the back of positive cues including expectations of better quarterly earnings and in-line RBI policy with no rate change.

In the last week, BSE Sensex rose 1293.48 points (2.20 percent) to close at 60,059.06, while the Nifty50 added 363.15 points (2.07 percent) to close at 17,895.20 levels.

The broader indices – BSE Midcap and Small cap indices rose 2.4 and 3.9 percent, respectively.

Among small caps, over 100 stocks rose between 10-59 percent including names like Syncom Formulations, Centrum Capital, Nazara Technologies, Nureca, Patel Engineering Company, Suven Life Sciences, Chambal Fertilisers and Brightcom Group.

On the other hand, losers included SREI Infrastructure Finance, Andhra Cements, Surya Roshni, Walchandnagar Industries, Gallantt Ispat, Mcleod Russel India, CG Power, Ballarpur Industries, Hikal, Toyam Industries, Titagarh Wagons and Dynamatic Technologies, among others.

“The benchmark indices maintained positive momentum and in the last week, the Nifty/Sensex gained over 2 percent. On the domestic front, RBI has announced Monetary policy and kept the key lending rate unchanged and retained the monetary stance as accommodative,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

“Technically, one more time, the index took support near 20 days SMA and reversed sharply. It also maintained higher bottom series formation which supports a short-term uptrend. We are of the view that the daily and intraday chart structure is positive and likely to continue in the near future,” he added.

The BSE 500 index added 2.3 percent in the week ended October 8, with 37 stocks rose more than 10 percent including Chambal Fertilizers, IRCTC, Deepak Nitrite, Lemon Tree Hotels, Bandhan Bank, Ashoka Buildcon, Aarti Industries and DCM Shriram.

“The domestic market was volatile during the 1st half of the week as global worries over US debt default along with rising bond yield and crude oil price weighed investor sentiments. However, as global worries cooled off with easing bond yield and crude price, the domestic market started gaining momentum,” said Vinod Nair, Head of Research at Geojit Financial Services.

“The expectation of good quarterly numbers and the dovish policy measures by RBI in their bi-monthly policy announcement helped in adding investor confidence.”

“In the coming week, domestic investors will shift their focus to Q2 corporate earnings. The IT sector will be in key focus as they are scheduled to release earnings in the coming days. The domestic market also awaits the release of September inflation data which is expected to settle below 5%. Globally, investors have the release of US jobs data on their radar to determine the course of the global markets in the coming week,” he added.

Also Read : Nifty 50 may move in 18,450-18,000 range over short term until cycle turns upside

Where is Nifty50 headed?

Sachin Gupta, AVP-Research at Choice Broking:

On a weekly basis, the index has gained almost 2% from the previous week’s close. A momentum indicator RSI moved above 60 levels while Stochastic has indicated positive crossover on a daily time frame. At present, the index has immediate support at 17700 while resistance comes at 18000 levels.

Rohit Singre, Senior Technical Analyst at LKP Securities:

Nifty has reached to strong hurdle zone of 17,950 where we can see sort of double top formation & if index managed to cross above said levels decisively then we may see good move towards 18,300-18,500 zone in near term but if failed then we may see some more consolidation in the overall range of 17,300-18,000 zone. The immediate support is coming near the 17.820-17.730 zone.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited.

It is going to be crucial for Nifty50 in the short-term scenario to sustain above the 17,770-17,800 support zone. If the market is able to sustain the said level, it can witness higher levels of 18,000.

The momentum indicators like RSI and MACD indicating positive momentum are likely to continue.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking:

As far as levels are concerned, 17,900 – 17,950 remains to be a sturdy wall and on the flipside, 17,600 has become a sacrosanct support now. The way we are following US markets of late; all eyes on them how they move going ahead.

Also, as far as Bank Nifty is concerned, nobody knows what it is up to. Clearly directionless and is flirting around key support as well as resistance levels.

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