&w=3840&q=100)
Micro, small, midcap indices outrun Nifty 50 in recent market pullback
Micro, small, midcap indices on the National Stock Exchange (NSE) have outperformed the Nifty 50 in recent market pullback triggered by the India – Pakistan truce on the boarders, shows data from ACE Equity.
While the Nifty Microcap 250 index has rallied around 6 per cent from its closing level on Friday, May 9 till May 13, the Nifty Smallcap 100 and the Nifty Midcap 150 indices have moved up 5 per cent and 4 per cent respectively during this period, shows ACE Equity data. In comparison, the Nifty 50 index has gained 2.4 per cent. (See graphic below) The outperformance in a lot stocks from the micro, small-and midcaps, said Kranti Bathini, Director-Equity at WealthMills Securities, has been on account of a positive earnings surprise in the March 2025 quarter (Q4-FY25).
'Mid-and smallcaps had been in a consolidation phase since long. Q4FY25 earnings for a lot of companies in these segments surprised positively, which triggered an up move. Though one cannot paint the entire sector with the same brush, it is advisable to take some profit off the table right now. Valuations for some of the stocks in the micro, small-and midcap baskets is still steep and prone to a correction. One has to be stock specific from here on,' he said.
Microcap, Midcap, Smallcap indices
At the stock level, Tanla Platforms, Syrma SGS Technology, Bharat Dynamics, Olectra Greentech, Nippon Life India Asset Management, The Jammu & Kashmir Bank, Reliance Power and Escorts Kubota gained between 11 per cent and 19 per cent during the recent market pullback, data shows.
K.P.R. Mill, Jyothy Labs, United Breweries, Navin Fluorine International, Chambal Fertilisers and Chemicals and UPL Ltd., on the other hand, lost ground.
The Nifty 50, according to analysts at IDBI Capital, is trading near one standard deviation above its 10-year average based on one-year forward earnings per share (EPS) estimates.
'In the absence of strong domestic catalysts and amid external policy risks, we expect the market to remain range-bound in the short term. As a result, we anticipate a more stock-specific environment going forward, where select stocks will outperform,' wrote Pravin Bokade and Shreejit Nair of IDBI Capital in a recent note.
Technical view on the markets
Those at Angel One, too, remain constructive on the markets and suggest investors adopt a 'buy on dips' strategy. Technically, considering the retracement of Monday's rally (from Friday's low), the 61.8 per cent level around 24330, which also marks the start of the bullish gap left, is seen as a crucial support for the Nifty 50 index now.
A breach below this level could see the ongoing up-move fizzle out. The 50 per cent retracement at 24,450 levels serves as immediate support for Nifty 50.
"On the upside, 24750 and 24900 are the key resistance levels to watch. Traders can continue to focus on mid-and small-caps, but should adopt a selective approach," advises Sameet Chavan, head of research for technical and derivatives at Angel One.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
2 hours ago
- Mint
Buy or sell: Ganesh Dongre of Anand Rathi recommends three stocks to buy on Monday — 9 June 2025
Buy or Sell: The Indian benchmark indices snapped a two-week losing streak, posting nearly a 1% gain for the week ended June 6, buoyed by a dual boost from the Reserve Bank of India (RBI). The central bank delivered a surprise 50 bps cut in the repo rate along with a 100-bps reduction in the Cash Reserve Ratio (CRR), significantly improving market sentiment. For the week, the BSE Sensex added 737.98 points or 0.9%, closing at 82,188.99, while the Nifty 50 surged 252.35 points to end at 25,003.05. A key driver of this rally was India's robust GDP growth of 7.4% in the January–March quarter of FY 2024–25, beating market expectations and marking the highest quarterly expansion in the past year. Globally, equity markets remained buoyant, supported by signs of easing inflation, which further bolstered investor sentiment in domestic markets. Sectorally, the Realty index led the gains with a nearly 10% surge, while Metal and PSU Bank indices rose around 2% each, reflecting strong broad-based participation. Technically, Nifty continues to consolidate within a well-defined range of 24,500 - 25,200, holding this zone for the past two weeks. The index gained momentum post the RBI announcements and touched the upper band of this range at 25,200, which also coincides with the 61.8% Fibonacci retracement of the recent down move. The previous resistance near 25,200 - 25300 is important level to watch for the next week closing, A sustained close above this level would be significant, potentially opening the door for an upside move toward 25,600 - 26,000 marks, Conversely, a break below 24,500 could indicate a short-term pause or mild correction, especially amidst lingering global uncertainties. The Bank Nifty index reacted sharply to the CRR cut, rallying nearly 800 points intraday and closing the week at a strong 56,500. The index now faces immediate resistance at the 57,000 marks, while key support is placed around 55,000. A decisive move above 57,000 could pave the way for a fresh uptrend toward 58,500, while any dip toward 55,000 is expected to attract buying interest. On a broader time frame, both Nifty and Bank Nifty have ended the week above their respective monthly support levels 23,800 for Nifty and 53,000 for Bank Nifty—signaling sustained bullish sentiment. Long-term structural supports remain at 21,700 for Nifty and 51,500 for Bank Nifty, serving as critical benchmarks for initiating fresh long positions. Traders are advised to keep a close watch on resistance levels at 25,300 (Nifty) and 57,000 (Bank Nifty), while staying vigilant of global developments and geopolitical factors that may sway market direction in the near term. 1. Bharat Forge Ltd (BHARATFORG): Buy at ₹ 1,280 - 1,300; Target Price at ₹ 1,360; Stop Loss at ₹ 1,230. 2. Mazagon Dock Shipbuilders Ltd (MAZDOCK): Buy at ₹ 3,390 - 3,410; Target Price at ₹ 3,600; Stop Loss at ₹ 3,325. 3. National Aluminium Company Ltd (NATIONALUM): Buy at ₹ 188 - ₹ 191; Target Price at ₹ 205; Stop Loss at ₹ 174. Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
4 hours ago
- Time of India
Nifty appears primed for breakout but wait for a pull back: Geojit's Anand James
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Stating that Nifty appears well primed to stage a breakout and embark on the 25460-26200 target, Anand James, Chief Market Strategist, Geojit Investments Limited, neither has the Bollinger band widened, nor has momentum indicators started showing strength to support a vertical rise."We will hence not be chasing prices right away on Monday, but instead wait for a pull back that will hopefully end before 24863. Major downside markers may be placed at 24640."Edited excerpts from a chat:Since the second half of April, Nifty had faced two stages of consolidation, the latter one having stretched over three weeks. Friday's spike has taken us to the upper band of this range. Nifty appears well primed to stage a breakout and embark on the 25460-26200 objective that we have been eying for the last fortnight. That said, neither has the Bollinger band widened, nor has momentum indicators started showing strength to support a vertical rise. This reluctance partly stems from Nifty lagging Bank Nifty , and even the SMIDs. We will hence not be chasing prices right away on Monday, but instead wait for a pull back that will hopefully end before 24863. Major downside markers may be placed at eyes are on 58400, but four hours of consolidation after Friday's initial rise point, point to the fact that we are not in a one way street yet. Adding reason to concern, RSI is still below the levels seen when Bank Nifty hit April's peak. This divergence does not call for a reversal yet, but a cautious approach is warranted at the start of the week, with downside marker placed at either 56400 or outperformance in the SMIDs was visible, as more of them rose above previous week's highs when compared to Nifty 50 constituents. While only 50% of Nifty 50 stocks closed above their respective 20 day SMA on Friday, 74.8% of small cap constituents closed above this benchmark on Friday. But while 50% of Nifty 50 stocks closed within the day's high on Friday, only 10% of small cap 250 constituents did so, suggesting that there is caution floating around, and a consolidation may be expected before a vertical rise vertical rise in the last few days had catapulted Cochin Shipyard's prices far beyond two standard deviations from mean, calling for caution. The red hammer candlestick pattern formed on Friday, which is usually a bearish reversal pattern adds to this conjecture. With this in the backdrop, we would be more comfortable with re entry, if a dip unfolds to either 2345 or (CMP:1194)View: BuyTarget: 1250 – 1340SL: 1098The stock formed its largest green candle since April 22, rebounding sharply from the Supertrend support at 1,146. On the daily chart, the SMIO histogram is showing signs of exhaustion at lower levels and is on the verge of crossing above the zero line—indicating a potential trend expect the stock to move toward 1,250 and 1,340 in the near term. All long positions should be protected with a stop-loss placed below 1,098. SHRIRAMFIN (CMP:688)View: BuyTarget: 820SL: 617After nearly two weeks of narrow-range trading, the stock has finally broken out decisively. It has formed a bullish Marubozu candle and witnessed a Supertrend breakout, signaling strong upward the SMIO has crossed above the zero line on both the daily and weekly charts, reinforcing the bullish outlook and pointing toward a potentially larger move in the coming expect the stock to move toward 820 in the near term. All long positions should be protected with a stop-loss placed below 617.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Economic Times
4 hours ago
- Economic Times
Nifty appears primed for breakout but wait for a pull back: Geojit's Anand James
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Stating that Nifty appears well primed to stage a breakout and embark on the 25460-26200 target, Anand James, Chief Market Strategist, Geojit Investments Limited, neither has the Bollinger band widened, nor has momentum indicators started showing strength to support a vertical rise."We will hence not be chasing prices right away on Monday, but instead wait for a pull back that will hopefully end before 24863. Major downside markers may be placed at 24640."Edited excerpts from a chat:Since the second half of April, Nifty had faced two stages of consolidation, the latter one having stretched over three weeks. Friday's spike has taken us to the upper band of this range. Nifty appears well primed to stage a breakout and embark on the 25460-26200 objective that we have been eying for the last fortnight. That said, neither has the Bollinger band widened, nor has momentum indicators started showing strength to support a vertical rise. This reluctance partly stems from Nifty lagging Bank Nifty , and even the SMIDs. We will hence not be chasing prices right away on Monday, but instead wait for a pull back that will hopefully end before 24863. Major downside markers may be placed at eyes are on 58400, but four hours of consolidation after Friday's initial rise point, point to the fact that we are not in a one way street yet. Adding reason to concern, RSI is still below the levels seen when Bank Nifty hit April's peak. This divergence does not call for a reversal yet, but a cautious approach is warranted at the start of the week, with downside marker placed at either 56400 or outperformance in the SMIDs was visible, as more of them rose above previous week's highs when compared to Nifty 50 constituents. While only 50% of Nifty 50 stocks closed above their respective 20 day SMA on Friday, 74.8% of small cap constituents closed above this benchmark on Friday. But while 50% of Nifty 50 stocks closed within the day's high on Friday, only 10% of small cap 250 constituents did so, suggesting that there is caution floating around, and a consolidation may be expected before a vertical rise vertical rise in the last few days had catapulted Cochin Shipyard's prices far beyond two standard deviations from mean, calling for caution. The red hammer candlestick pattern formed on Friday, which is usually a bearish reversal pattern adds to this conjecture. With this in the backdrop, we would be more comfortable with re entry, if a dip unfolds to either 2345 or (CMP:1194)View: BuyTarget: 1250 – 1340SL: 1098The stock formed its largest green candle since April 22, rebounding sharply from the Supertrend support at 1,146. On the daily chart, the SMIO histogram is showing signs of exhaustion at lower levels and is on the verge of crossing above the zero line—indicating a potential trend expect the stock to move toward 1,250 and 1,340 in the near term. All long positions should be protected with a stop-loss placed below 1,098. SHRIRAMFIN (CMP:688)View: BuyTarget: 820SL: 617After nearly two weeks of narrow-range trading, the stock has finally broken out decisively. It has formed a bullish Marubozu candle and witnessed a Supertrend breakout, signaling strong upward the SMIO has crossed above the zero line on both the daily and weekly charts, reinforcing the bullish outlook and pointing toward a potentially larger move in the coming expect the stock to move toward 820 in the near term. All long positions should be protected with a stop-loss placed below 617.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
