These Smallcaps Gain Between 10 25% Despite Broader Indices Underperform

These smallcaps gain between 10-25% despite broader indices underperform

Broader Indices End Flat Despite Smallcap Resilience

The stock market wrapped up the holiday-shortened week ending December 27 with muted performance from the broader indices. While the main indices saw modest gains, smaller players showed resilience, with select smallcaps delivering significant returns.

The BSE Sensex added 657.48 points (0.84%) to close at 78,699.07, while the Nifty50 index rose 225.9 points (0.95%) to settle at 23,813.40.

Sector-Wise Performance

Among the sectors, the Nifty Auto and Pharma indices emerged as top performers, gaining over 2% each. The Nifty FMCG index also showed strength with a 1.5% rise, while Nifty Bank and Realty indices gained 1% each.

On the flip side, the Nifty Media index fell nearly 2%, and the Nifty Metal index declined by 1%, reflecting a mixed sectoral performance.

FII vs. DII Activity

Foreign Institutional Investors (FIIs) continued to offload equities, selling stocks worth ₹6,322.88 crore during the week. However, Domestic Institutional Investors (DIIs) lent support, buying equities worth ₹10,927.73 crore, stabilizing the market.

For December so far, FIIs have sold equities worth ₹10,444.10 crore, while DIIs have infused ₹27,474.14 crore, showcasing robust domestic investor confidence amid global uncertainty.

Key Market Trends

Amol Athawale, VP of Technical Research at Kotak Securities, noted that the benchmark indices experienced non-directional activity, with profit booking near the 200-day Simple Moving Average (SMA). The Nifty found support near 23,650, while resistance capped gains around 23,860–24,000 levels.

“The formation of a small inside body candle on the weekly charts and non-directional activity on the daily and intraday charts reflect indecisiveness among bulls and bears,” he added.

Smallcaps Shine Amid Broader Market Flatness

Despite the flat performance of the BSE Small-cap index, several smallcaps delivered remarkable returns. Companies like Intellect Design Arena, Amber Enterprises India, Greaves Cotton, Aarti Pharmalabs, PTC Industries, and Campus Activewear gained between 10-24%, showcasing the resilience of select smallcaps in a challenging market.

On the downside, smallcaps such as Rajoo Engineers, Titagarh Rail Systems, Indo Count Industries, and KPR Mill declined between 10-13%, reflecting a mixed bag in the smallcap segment.

Smallcaps

Technical Outlook

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, sees a slightly positive short-term trend for the Nifty but warns of strong overhead resistance at 24,000–24,200 levels. He suggests that any rise toward these levels could present a sell-on-rise opportunity, with immediate support at 23,650.

Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates, highlighted the importance of the 200-day SMA placed around 23,860, which remains a crucial hurdle for the Nifty.

“A sustainable move above this level could push the index toward 24,000–24,100. On the downside, 23,500 remains a key support level. In the short term, Nifty is likely to consolidate between 23,500 and 23,900, with a breakout in either direction determining its next move,” Yedve explained.

Conclusion

As the broader indices remain flat, selective smallcaps have emerged as outperformers, delivering impressive gains. The market dynamics continue to be influenced by FII selling pressure, DII support, and mixed sectoral performance.

Investors should keep an eye on technical indicators like the 200-day SMA and key resistance and support levels to navigate the market’s indecisiveness. The Nifty’s consolidation phase between 23,500 and 23,900 will likely define the direction of the next major move, while the performance of smallcaps could provide key opportunities in an otherwise tepid market.

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