Small and medium midcap shares are very successful: 49 shares on the BSE500 increase by 10-30% per week

Supporting factors such as positive global indicators, strong results from India Inc., healthy economic data and RBI economic support measures have helped market participants maintain concern around the COVID-19 cases.

India has been recording 4 lakh new cases of COVID daily during the second wave.
Measurement indicators have risen above important mental levels over the past week. The S&P BSE Sensex closed above 49,000 while the Nifty50 managed to recapture 14,800.

The S&P BSE Sensex increased by 0.87 percent while the Nifty50 rose 1.31% in the week ending April 7. In comparison, the S&P BSE Midcap index rose 1.4 percent and the S&P BSE Smallcap index added 2.5 percent.

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Analysts say the rise in broader markets has strong implications for India Inc. in small space and midcap.
“Nifty-50 has managed to climb the wall of anxiety and have posted a weekly gain of ~ 1.3%. India’s markets are seeing a change in the situation in the face of the Covid-19 crisis cases that have caused many provinces to extend travel restrictions by 1-2 months, “Rusmik Oza, Deputy Chief Executive Officer, Head of Fundamental Research at Kotak Securities.

“The broader markets are seeing a very positive trend due to the season of results. Both, the NSE Midcap and the BSE Small Cap Index have won Nifty-50 this week. Strong Data from the US and China helps global markets stay on top, ”he said.

The 49 shares on the S&P BSE 500 index increased 10-30% per week, including Lupine, Hindustan Copper, Fortis Healthcare, Vedanta, Tata Coffee, Coforge, HFCL and Dish TV India.
In terms of industry, the Metal index has remained as a standout performer for the second consecutive week in consecutive over 10 percent with only 5 trading times. Metal prices have been rising since there was a strong revival of global demand, according to experts.

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“This week the steel index, especially steel, has improved because China has recently waived VAT on imported steel which means that exports to China will not be as profitable as before and Indian players will be able to address the needs of the world,” said Nirali Shah, Head of Equity Research. said Samco Securities.

What to watch out for?

Ahead of the revenue stream, there are up to 150 companies that will report their results in the quarter ending March 2021 from 7-15 May. Investors will also look at daily COVID charges as well as inflation data and IIP.

“Over the next week, the market situation will be revealed in terms of advances in the distribution of COVID, subsequent outcomes, and global indicators,” said Vinod Nair, Head of Research at Geojit Financial Services.

“Details of industrial production in March and inflation data for April are expected to be released this week. The IIP data is expected to show strong growth due to the economic recovery announced in March and inflation is expected to remain at a high level, ”he said.

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Technical View:

The Nifty50 restored 14800 levels by closing on Friday and the 50-Days SMA. Experts are of the opinion that the index could face some opposition at 14900-15000 levels.

Traders have to wait for the top 15000 to start new long positions. “Nifty has made a headline on the daily chart, however, every week, Nifty has scored 400 points at very low levels. A good part of the week is that the Nifty-50 closed above 14800 critical resistance,” said Shrikant Chouhan, Vice President in charge. Equity Technical Research at Kotak Securities said.
“Nifty could rise to as low as 15000-15050 levels. However, the market will increase momentum, if it exceeds 15150 levels. With the decline, 14600 and 14500 will be major suppliers,” he said.

Chouhan added that during the week, FII best-selling FII shares reached 5,500 crores which should be rectified immediately otherwise it would reduce market attention.

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