The fourth phase of Lok Sabha 2024 elections just concluded on Monday, May 13. Equity market have witnessed high amount of volatility during this phase, with India VIX – the volatility index – rising from levels of 13 per cent on April 18 to 20.6 per cent on May 13 – the election phase so far.
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Despite this volatility, the broader market – the Nifty 500 and Nifty MidCap have managed to outperform the peers – Nifty 50 and Nifty SmallCap indices.
The NSE Nifty 500 index was up 0.9 per cent during this period, with nearly half (214 stocks) outperforming the underlying index and registering gains in excess of 1 per cent.
As many as 54 Nifty 500 stocks, have rallied more than 10 per cent in this period, which is less than a month, with Tejas Networks with a surge of nearly 51 per cent as the top mover.
The market is witnessing stock-specific action rather than index-specific action. Selective buying is seen in mid-, small- and even large-cap stocks, hence we are seeing outperformance by select stocks. Factors such as earnings visibility, valuations are driving the gains at these counters, Kranthi Bathini said.
Meanwhile, the frontline indices, the Sensex and Nifty were up 0.5 per cent and 0.2 per cent. Whereas, the NSE MidCap 150 index gained 1.8 per cent, while the Nifty SmallCap 250 index was down 0.9 per cent since the first phase of voting for Lok Sabha 2024 elections.
Kranthi adds that the overall trend is expected to remain range-bound for the market, with strong support for Nifty seen at 22,200 and 22,000 levels, and key resistance at 22,700.
Nifty 500
Current Level: 20,560
Upside Potential: 2.7%
The Nifty 500 index is seen languishing below the short-term, 20-DMA (Daily Moving Average) for the last five trading sessions. The 20-DMA stands at 20,688. As and when the Nifty 500 starts quoting above the same, the index will pick up pace, and move towards the higher-end of the anticipated trading band, which suggests a potential target of 21,120. For real strength to emerge, the Nifty 500 index will need to break free above 21,500 levels.
First Published: May 14 2024 | 10:33 AM IST
