Small & mid-caps carnage continues; these 11 stocks in BSE-500 rose 10-30% in 5 days

The carnage in the broader market continued as both small and midcap indices underperformed benchmark indices for the week that ended on February 15.

The S&P BSE Small-cap index and the S&P BSE Mid-cap index dropped 2.96 percent and 2.71 percent respectively, compared to both S&P BSE Sensex and Nifty50 which fell by about 2 percent respectively in the same period.

“Market slid due to a broad-based selling across sectors as rising yields and a weak rupee cast clouds over investor’s sentiment. Volatility may continue due to a lack of positive triggers in the domestic market, while rising oil prices will impact domestic macros in the near term,” Vinod Nair, Head of Research, Geojit Financial Services, told Moneycontrol.

“Global markets turned negative due to obstacles in the US-China trade deal,” he said.

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In the S&P BSE 500 index which fell 2.3 percent for the week ended saw 11 shares outperforming the index which includes names like Dilip Buildcon, Shankara Building Products, Yes Bank, Redington India, Infibeam Avenues, Jindal Stainless, Reliance Capital, Dewan Housing Finance, Sun Pharma Advanced Research, Adani Power, and Dish TV.

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(Note: The above list is for reference and not buy or sell recommendations)

In the S&P BSE 500 index, as many as seven stocks gave double digit returns which hit a 52-week low earlier in the month of February which includes names like Dilip Buidlcon, Shankara Building, Redington India, Jindal Stainless, Reliance Capital, Dewan Housing Finance, and Sun Pharma Advanced Research.

The S&P BSE Small-cap index plunged by about three percent in five trading sessions and the only handful of stocks gave double-digit returns compared to stock which saw a similar cut in the same period.

As many as 20 stocks in the S&P BSE Small-cap index gave a 10-26 percent return which includes names like A2z Infra Engineering, Rolta India, Redington India, Jindal Stainless, Tree House, Kwality, JBF Industries etc. among others.

In terms of losers, as many as 78 stocks in the index fell by 10-25 percent in the same period which includes names like Punj Lloyd, Nandan Denim, Mirza International, ABG Shipyard, Graphite India, IIFL Holdings, Natco Pharma, Repco Home Finance etc. among others.

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(Note: The above list is for reference and not buy or sell recommendations)

Technical Outlook:

The Nifty formed a bearish candle on the weekly charts and a Hammer-like candle on the daily charts on February 14, which indicates that the immediate trend is in pressure, but some bounce could be seen at lower zones, suggest experts.

If the index has to move higher, it has to negate the formation of lower highs by moving above 10,785 zones to witness a bounce back move towards 10,850 and then towards 10,929 zones. On the downside, support exists at 10,620 then 10,580 zones.

India VIX moved up by 5.72 percent at 16.46 levels in the last week while Put Call Ratio fell down from 1.59 to 1.30 levels, the spurt in VIX with a decline in PCR OI suggests that supply pressure is intact in the market at every important resistance zones.

On the options front, maximum Put OI is placed at 10700 followed by 10400 strikes while maximum Call OI is placed at 11000 followed by 10900 strikes.

“The index is now near to the major support zones and lower part of the range which could decide the next leg of the rally, so either here a small bounce or else the next leg of fresh break down,” Chandan Taparia, Associate Vice President, Analyst-Derivatives, Motilal Oswal Financial Services told Moneycontrol.

“The Nifty index remained under pressure for all the five trading sessions of the week, and closed with the losses of two percent by drifting towards the lower band of the recent trading range. Put writing is seen at 10300 followed by 10500 strikes, while Call writing is seen at 10700 then 10800 strikes. Option band signifies a lower shift in the trading range in between 10600 to 10900 zones,” he said.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Feb 16, 2019 12:47 pm

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