Small-Caps Rally: In the week ended on August 14, Indian markets broke the process of decline of 6 weeks. Along with benchmark index, the broad market also increased. The BSE mid and smallcap index broke the process of decline of 3 weeks. While the Largecap index also broke the 6 -week decline after positive figures from the US and India. The market benefited from good figures of retail inflation, results as expected, strengthening of rupee and fall in oil prices.
Last week, BSE large-cap and mid-cap index gained 1-1 per cent, while the BSE Small-Cap index gained 0.4 per cent. This week, the BSE Sensex rose 739.87 points or 0.92 per cent to 80,597.66 and the Nifty 50 index increased by 268 points or 1.10 per cent to close at 24,631.30.
Foreign institutional investors continued selling and sold shares worth Rs 10,172.64 crore. On the other hand, domestic institutional investors also continued their purchases and bought shares worth Rs 18,999.76 crore.
So far in August, FII has sold equity worth Rs 24,191.51 crore and DII has bought equity worth Rs 55,795.28 crore.
On the sectoral front, the Nifty Healthcare and Pharma Index recorded 3.5-3.5 per cent, 2.7 per cent in the Nifty Auto Index and 2 per cent in the Nifty PSU bank index. On the other hand, the Nifty Consumer Durables and FMCG index recorded a decline of 0.5-0.5 per cent.
The BSE Small-Cap index closed up 0.4 per cent, with the journey online with a 55 per cent gain. This was followed by HBL Engineering, NMDC Steel, JM Financial, Rico Auto, EIH and VST Tillars Tillars. The most declining stocks included PG Electroplast, NIBE, Camlin Fine Sciences, Best Agrolefe, Marksons Pharma and Action Construction Equipment.
Nagraj Shetty, Senior Technical Research Analyst of HDFC Securities It is said that there are indications of technically the market being in limited scope and the market will be eyeing geopolitical events during the long weekends.
Nifty created a positive candle on the weekly chart, which led to the rise in the market. The condition of cluster support around 24300-24200 can provide strong support on any decline from here. However, going above the resistance of 24700 can open the way to the level of 25,000 in the near future.
LKP Securities Senior Technical Analyst Metapors Day It is said that as long as the index remains above 24,337, the overall trend will remain faster. There is a resistance at the top and the Nifty at 24,660 and 24,850, while the recession may begin again when it falls below 24,337.
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