A larger time frame chart suggests that the uptrend could enter a consolidation phase or a minor corrective wave; therefore, market participants should be little cautious entering markets specially the broader market space at current levels,” said Aditya Agarwala, Senior Technical Analyst at YES SECURITIES.
The Indian stock market continues trading in the green trading as Sensex is up 219.69 points or 0.42 percent at 53099.69, and the Nifty adding 72.50 points or 0.46 percent at 15906.90.
The BSE Smallcap index gained over half a percent and hit a fresh record high.
The index edged higher surging over 100 percent in the last year versus the Sensex which added 47 percent in the same period.
Catch all the market action on our live blog
As the smallcap index hit a record high, stocks including Wonderla Holidays jumped over 16 percent followed by Force Motors, MSTC, NESCO and HBL Power which jumped 12-16 percent each.
According to Aditya Agarwala, Senior Technical Analyst at YES SECURITIES, the broader markets resumed their outperformance vis-à-vis the Nifty50 index. The midcap index gained 0.47 percent while smallcap index gained 2 percent for the week.
“However, following the constant outperformance of the smallcap index it is approaching overbought territory i.e. RSI nearing 80 levels which previously has acted as a reversal zone,” he said.
“A larger time frame chart suggests that the uptrend could enter a consolidation phase or a minor corrective wave; therefore, market participants should be little cautious entering markets specially the broader market space at current levels,” he added.
Over 450 midcap stocks have hit a 52-week high on BSE including Wonderla Holidays along with HBL Power, NESCO, Indo Count Industries, TVS Electronics, Igarashi Motors, Navneet Education, Gravita India, Inox Wind and Nagarjuna Fertilizers have hit a 52-week high among others.
On the other hand, 500 stocks in the smallcap index have hit the upper circuit including GTL Infra, JP Power, Bajaj Hindusthan, Gammon Infra, Andhra Cements and Sakthi Sugars among others.
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.
