Shares of select midcap and smallcap companies were in demand with the Nifty Midcap 100 and Nifty Smallcap 100 indices hitting fresh 52-week highs in Friday’s trade amid a strong rally in equities.
Besides, Nifty Midcap 100 and Nifty Smallcap 100 indices, Nifty Midcap 50, Nifty Smallcap 50, Nifty Midcap Select and Nifty Midsmallcap 400 indices also hit their respective 52-week highs in intra-day deals today.
Kalyan Jewellers, Adani Total Gas, Paytm, Bharat Heavy Electricals Limited (BHEL), KEI Industries, Persistent Systems and Biocon from the Nifty Midcap 100 index were up in the range of 3 per cent to 6 per cent.
Zensar Technologies, Central Depository Services (India) (CDSL), Bandhan Bank and Mangalore Refinery and Petrochemicals (MRPL) from the Nifty Smallcap 100 index rallied between 5 per cent and 12 per cent.
Meanwhile, tensions in West Asia continue without any clarity of a resolution to the geopolitical crisis. However, interestingly, markets are largely ignoring these negative developments. Brent crude declined 3 per cent in a day and global stock markets have completely ignored the renewed tensions. This confident message from the market is significant. But investors have to be cautious, warranting monitoring of the developments,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
From the domestic perspective, there are no major headwinds for the economy now. Stock markets will reflect this economic resilience and will respond positively to positive news from sectors and companies, said Dr. VK Vijayakumar.
On the technical front, analyst at ICICI Securities believe, ongoing retracement in Nifty is a part of the prevailing uptrend which would make the market healthy. Therefore, any dip from hereon should be used as buying opportunity as strong support is placed in the 23,600-23,400 zone which analyst expect to hold. Further, any ease of in geopolitical tensions would fuel the momentum toward 24,500, being placement of the 200-day exponential moving average (EMA).
The mid-cap index staged a robust rebound from its 50-day EMA, recovering entirely from the previous session’s decline. Similarly, the small-cap index saw a strong bounce after holding its 18-month falling trend line breakout level, reinforcing prevailing uptrend remains intact, ICICI Securities said. ======================================================= Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.
