These include NBCC, Affle India, Tata Coffee, IDBI Bank, Sobha, Birlasoft, VA Tech Wabag and Varroc Engineering
Bulls remained in control of
D-Street throughout the week to push the benchmark indices above crucial
resistance levels. The S&P BSE Sensex closed above 38,000 on August 21,
while Nifty50 reclaimed 11,300 levels, but the real action was seen in the broader
market.
Strong global cues, positive
developments on the vaccine front, expectations of a rate cut in future,
stimulus package from global central bankers kept bulls busy on D-Street in the
week gone by, suggest experts.
Sensex rose 1.4 percent while
the Nifty50 closed with gains of 1.7 percent for the week ended August 21
compared to a 3.6 percent rise in the S&P BSE Mid-cap index, and 5.5
percent rally in the S&P BSE Small-cap index in the same period.
“Overall, the market sentiment
has remained strong and buoyant on the back of expectations of normalcy of
demand returning by H2FY21 and positive news flow around the development of a
possible vaccine against COVID -19,” Shibani Sircar Kurian, Executive Vice
President, Fund Manager & Head- Equity Research, Kotak Mahindra AMC said.
“The minutes of the Monetary Policy Committee
(MPC) meeting were released this week. The minutes highlighted that concerns on
inflation prompted the MPC to keep the repo rate unchanged, even as growth
remained considerably weak. However, it was acknowledged that there was room to
cut rates further, which would be used judiciously,” she said.
Broader market remained in
limelight with both Small & midcaps outperforming the benchmark indices by
a wide margin.
There are as many as 92 stocks
in the S&P BSE 500 index that rose 10-60% in just 5 sessions from
August 14 to 21. These include NBCC, Affle India, Tata Coffee, IDBI Bank,
Sobha, Birlasoft, VA Tech Wabag and Varroc Engineering.
Note:
Here is a list of top 30 stocks out of 92 based on returns in the BSE500 index.
"During the week, broader
markets continued to rise with momentum whereas major large-cap indices
consolidated taking cues from global markets. Indian markets are seen mimicking
US indices from a directional perspective rather than velocity," Nirali
Shah, Senior Research Analyst, Samco Securities told Moneycontrol.
In terms of sectors, the
S&P BSE Power, and Utilities index rallied by over 10 percent each followed
by the BSE Realty index which was up 8.6 percent, and the S&P BSE
Infrastructure index rose 8.3 percent.
Mild profit-taking was seen in
the S&P BSE Energy index which fell 0.7 percent, followed by the S&P
BSE Telecom that was down 0.75 percent, and the S&P BSE IT Index closed
with losses of 0.3 percent for the week ended August 21.
Technical
View:
On a technical front, Nifty50
witnessed highly volatile sessions with gap ups and gap downs and finally
closed the week on a positive note. Experts advise investors to book partial
profits as buying momentum seems to be fading at higher levels – but the trend
is on the upside.
“We observe a broader sideways
range movement in Nifty as per weekly timeframe chart and the market is placed
at the edge to move above the crucial long term resistance around 11450-11500
levels as per the concept of change in polarity. But, one needs to be careful
about false upside breakout,” Nagaraj Shetti, Technical Research Analyst, HDFC
Securities told Moneycontrol.
“The short term uptrend status
remains positive. Today's upside bounce could bring hopes for bulls to make a
comeback. Nifty is expected to reach the upside levels of 11460-11500 levels by
next week. Immediate support is placed at 11290,” he said.
Shah of Samco Securities is of
the view that the market is at a crucial juncture with a lack of participation
from index movers and the financial space is already struggling with its own
problems and underperformance.
“The short term trend is still
intact and can be considered bullish, however, this upside is limited.
Immediate support for the index is now placed at 11100,” she said.
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