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As Market Gains in Diwali Week, More Than 30 Smallcaps Rise up to 31%

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In the holiday-shortened Diwali week, Indian benchmark indices ended with a gain of one percent. After a positive start for the new Samvat 2079 on the Muhurat trading day (October 24), the market remained volatile amid monthly F&O expiry, better US GDP data, Bank of Japan keeping policy balance rate at -0.1%, rate hike by European Central Bank, decent earnings, and FII support For the week, BSE Sensex rose 652.7 points or 1.10 percent to end at 59,959.85 while the Nifty50 added 210.5 points or 1.19 percent to close at 17,786.8 On the sectoral front, Nifty PSU Bank index rose 5 percent, Nifty auto index added 4 percent, and Nifty Oil & Gas index 3.2 percent. On the other hand, Nifty FMCG index lost 0.7 percent For the week, BSE Smallcap index added 0.4 percent, while Midcap and Largecap indices rose 1 percent each While the market continued to stay volatile, Sensex revisiting the 60,000 mark for a brief period indicates that investors are willing to bet on India’s growth story in spite of lingering recession fears in key economies,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities The aggressive rate hike fears by the US Fed seem to be fading for some time, as the falling US Dollar index, declining treasury yields, and benign crude oil prices are turning out to be key.

Market Gains

Technically, the Nifty is consistently facing resistance between 17,800-17,850. Also.

the index is consistently taking support near 17,600 On weekly charts, the Nifty has formed a Hammer kind of candlestick formation, indicating indecisiveness among bulls and bears. In the near future, 17,800 would act as a key resistance zone for traders, and above the same, the index could rally till 18,000-18,100 On the flip side, below 17,600 the selling pressure is likely to increase and could retest the 50-day SMA (simple moving average) or 17,500. Further downside could drag the index till 17,400 During the week, FIIs bought equities worth of Rs 3,986.25 crore while domestic institutional investors (DIIs) sold equities worth of Rs 1,240.47 crore However, in the month of October till now FIIs have sold equities worth of Rs 4,667.67 crore, while DII bought equities worth of Rs 10,384.07 crore The BSE Small-cap index rose 0.4 percent with the following adding 15-31 percent: D-Link India, Infibeam Avenues, Transformers and Rectifiers India, Bharat Bijlee, South Indian Bank, Muthoot Capital Services, J Kumar Infraprojects, Sasken Technologies, Rama Steel Tubes, Tourism Finance Corp of India, Dhani Services, HPL Electric & Power, IIFL Finance, and Ramky Infrastructure The following added 7-13 percent: Sharda Cropchem, Bombay Dyeing, Rajratan Global Wire, KPI Green Energy, Thirumalai Chemicals, CarTrade Tech, Prince Pipes & Fittings, Cantabil Retail India, Monarch Networth Capital,  Apcotex Industries, DCM Nouvelle, Ruby Mills, and Metro Brands.

Market Gains

The BSE 500 index gained 1 percent supported by Infibeam Avenues, Tata Motors- DVR, Bank Of India.

IIFL Finance, Multi Commodity Exchange of India, SJVN, Latent View Analytics, Bharat Heavy Electricals, Rail Vikas Nigam, and Indraprastha Gas The domestic market remained flat with a positive bias during the week as favourable local cues were countered by mixed global mood. The US GDP grew 2.6 percent during the September quarter. However, it failed to lift the market as US tech stocks saw a significant sell-off following disappointing quarterly results and a bleak forecast,” said Vinod Nair, Head of Research at Geojit Financial services The European Central Bank raised interest rates by 75 basis points, also signalling that it is making progress in combating record inflation, though the plausibility of a recession grew. The expectation that the central banks would slow down the pace of rate hikes from the beginning of 2023 gave comfort to the global markets As a result, bond yields across the globe softened, with the US 10 year yield diving below 4%. Strengthening rupee along with a softening treasury yield and decent Q2 earnings results will support the domestic market in the near term.”

Where is Nifty50 headed?

Manish Shah, Independent Technical Analyst:

In the last four days, Nifty traded in a narrow band of 17,850-17,650. A break above 17,850 will lead Nifty higher to 18,000-18,100. The crucial level to watch out for is if Nifty will break above 18,000-18,100 and how will the market behave in that area. For the time being we anticipate that Nifty will eventually move above 17,850 for a rally to 18,000 and higher Hold on to long trades till the time Nifty trades above 17,500 Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities Markets raced ahead as bulls were seen enthusiastic with immediate inter-week goal posts for Nifty seen at the psychological 18,000 mark. Above 18,000, the benchmark Nifty will aim for its all-time high of 18,605 The positive takeaway was that the bulls shrugged off the fact that the Fed will almost certainly issue a fourth-straight 75 basis point rate increase at its policy meeting scheduled on November 2.

Market Gains

The hike in the base rate by the European Central Bank of 75 basis points and the likelihood of a rate hike by the hawkish Fed in the meeting which is scheduled for next week, and encouraging US GDP numbers are factors that may be of consequence to the markets in the coming week The special additional meeting of the rate setting panel convened by the RBI on November 3, and the possibility of further rate hikes given persistent inflation is something that market is pondering over with caution at this juncture. We may continue to see some volatility in the markets as we cruise into the new week Disclaimer: The views and investment tips expressed by investment experts on  are their own and not those of the website or its management. c advises users to check with certified experts before taking any investment decisions.

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