A century to savour! Over 100 smallcap stocks deliver double-digit gains as bulls prevail after five weeks
During the week, over 100 smallcap stocks delivered double-digit weekly returns with 15 of them offering over 25% gains.
RailTel was the top gainer in the smallcap pack with 46% return, followed by India Pesticides (41.9%), Optiemus Infracom (36.3%) and HLV (33.7%).
About nine stocks, including Jaiprakash Associates, Pearl Global, Himadri Speciality, MTAR Tech, Bajaj Healthcare, among others delivered between 20-25% gains during the week.
In the midcap segment, eight stocks, including BHEL, Vodafone Idea, IRFC among others rose in double digits. While BHEL gained nearly 30%, Voda Idea and IRFC were up 15% each.
In the Sensex pack, Tata Steel topped the charts with 8.7% returns, followed by Maruti Suzuki at 8.66% and NTPC at 5.85%.
Sector wise, there was heavy buying in metal stocks in anticipation of further stimulus measures from the Chinese government.
Auto stocks also performed well, buoyed by strong sales figures.
What should investors do?
In the coming week, analysts say in the absence of any major triggers from the domestic market, sentiments will be driven by global cues, including the release of US payroll and PMI data.
«We expect the market to trade in a range with sector- and stock-specific actions as the broader market momentum remains positive,» said Siddhartha Khemka, Head — Retail Research, Motilal Oswal Financial Services.
Technically, there is a tussle around the short-term moving averages (20 EMA and 50 EMA) and need a decisive close above 19,500 in Nifty to prompt further recovery, according to technical analysts.
«Looking at the higher end of the spectrum, there is now a resistance level at 19,530 points. If the Nifty manages to breach this resistance, it could signal a continuation of the uptrend.
