Sustained selling pressure from foreign investors, muted second quarter earnings expectations, and elevated valuations acted as headwinds for the market during the week as benchmark indices ended in the red.
But, even in a muted market, 42 smallcap stocks have delivered double-digit weekly returns with five of them offering over 25% returns.
Nalwa Sons Investment was the top gainer from the smallcap pack with nearly 43% returns, followed by Precision Camshaft (29%), Motilal Oswal (27%), and Renaissance Global (26.4%).
About four stocks, including Kalyani Investment, Info Tech Transform, Filatex Fashions, Sanghvi Motors have offered returns between 20-25% during the week.
In the midcap segment, none of the stocks gained in double digits, but HPCL and Mphasis rallied the most. While the former jumped about 9%, the latter's stock increased nearly 8%.
From the Sensex pack, ICICI Bank topped the charts with 3% returns, followed by L&T at 2.6% and Tech Mahindra at 2.6%.
During the start of the week, a slew of postive macro news, such as stronger-than-expected PMI figures, sequential growth in auto sales, and robust expansion in bank credit, kept the markets bouyant.
What should investors do?
Geopolitical tensions and uncertainty ahead of the US presidential election paved the way for haven asset gold to climb a new record high during the week.
Analysts said they expect the investment strategies favouring China over India may tactically support for the short term.
"However, the long-term outlook for the domestic market remains robust with stability in growth and a pickup in capex. We expect the market to be range-bound in the short term with a mixed bias, while investors should turn more sector- and stock-specific in such a time," said Vinod Nair, Head of Research, Geojit Financial Services.
Analysts further said participants should not overanalyse the single-day rebound and instead wait for a decisive close above 25,150 in Nifty for any signs of a sustained recovery.
"After the strong recovery in the banking sector, the market's reaction to major banks like HDFC Bank and Kotak Bank in early trade on Monday will likely set the tone for the session. Meanwhile, we maintain a cautious outlook on the markets and advise keeping a close watch on position sizes amidst the ongoing choppiness," said Ajit Mishra – SVP, Research, Religare Broking.
Technically, a reasonable positive candle was formed on the daily chart with a minor lower shadow, indicating a short-term reversal in the market on the upside post-downward correction.
Immediate support is at 24,500 and the next overhead resistance is placed around 24,950-25,000 levels, said Nagaraj Shetti of HDFC Securities.
(With data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
But, even in a muted market, 42 smallcap stocks have delivered double-digit weekly returns with five of them offering over 25% returns.
Nalwa Sons Investment was the top gainer from the smallcap pack with nearly 43% returns, followed by Precision Camshaft (29%), Motilal Oswal (27%), and Renaissance Global (26.4%).
About four stocks, including Kalyani Investment, Info Tech Transform, Filatex Fashions, Sanghvi Motors have offered returns between 20-25% during the week.
In the midcap segment, none of the stocks gained in double digits, but HPCL and Mphasis rallied the most. While the former jumped about 9%, the latter's stock increased nearly 8%.
From the Sensex pack, ICICI Bank topped the charts with 3% returns, followed by L&T at 2.6% and Tech Mahindra at 2.6%.
During the start of the week, a slew of postive macro news, such as stronger-than-expected PMI figures, sequential growth in auto sales, and robust expansion in bank credit, kept the markets bouyant.
What should investors do?
Geopolitical tensions and uncertainty ahead of the US presidential election paved the way for haven asset gold to climb a new record high during the week.
Analysts said they expect the investment strategies favouring China over India may tactically support for the short term.
"However, the long-term outlook for the domestic market remains robust with stability in growth and a pickup in capex. We expect the market to be range-bound in the short term with a mixed bias, while investors should turn more sector- and stock-specific in such a time," said Vinod Nair, Head of Research, Geojit Financial Services.
Analysts further said participants should not overanalyse the single-day rebound and instead wait for a decisive close above 25,150 in Nifty for any signs of a sustained recovery.
"After the strong recovery in the banking sector, the market's reaction to major banks like HDFC Bank and Kotak Bank in early trade on Monday will likely set the tone for the session. Meanwhile, we maintain a cautious outlook on the markets and advise keeping a close watch on position sizes amidst the ongoing choppiness," said Ajit Mishra – SVP, Research, Religare Broking.
Technically, a reasonable positive candle was formed on the daily chart with a minor lower shadow, indicating a short-term reversal in the market on the upside post-downward correction.
Immediate support is at 24,500 and the next overhead resistance is placed around 24,950-25,000 levels, said Nagaraj Shetti of HDFC Securities.
(With data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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