Despite broader indices underperforming, 37 small-cap stocks gained between 10% and 43%. In the current month, Foreign Institutional Investors (FIIs) sold equities worth ₹80,217.90 crore, while Domestic Institutional Investors (DIIs) bought equities worth ₹74,176.20 crore. The broader market faced volatility, with the BSE Sensex declining by 156.61 points (0.19%) to close at 81,224.75, and the Nifty50 dropping 110.25 points (0.44%) to finish at 24,854.
The BSE Mid-cap Index fell by 1%, the Large-cap Index slipped by 0.7%, and the Small-cap Index ended flat. Sector-wise, the Nifty Auto Index saw a significant decline of nearly 5%, the Nifty Metal Index fell by around 2%, and indices such as Nifty Media, FMCG, and Oil & Gas shed about 1.5%. In contrast, the Nifty Bank Index rose nearly 2%, while the Nifty PSU Bank and Nifty Realty indices gained 1% and 0.6%, respectively.
FIIs continued their selling trend, offloading equities worth ₹21,823.34 crore during the week, which was somewhat offset by DIIs purchasing ₹16,384 crore in equities. The ongoing profit booking at higher levels led to a third consecutive week of declines in the benchmark indices, amidst muted Q2 earnings and sustained selling pressure from FIIs.
Technically, the Nifty slipped below its 50-day Simple Moving Average (SMA) and breached key support levels of 24,900 and 81,500. However, it trimmed some losses to close at 24,860 and 81,200. Analysts pointed out a bearish candle formation on weekly charts, indicating a largely negative sentiment.
Among small-cap stocks, Nalwa Sons Investment, Precision Camshafts, and Motilal Oswal Financial Services were some of the gainers, rising between 15% and 43%. Conversely, stocks like Magellanic Cloud and Heubach Colorants India faced losses of 10% to 24%.
Looking forward, Nagaraj Shetti from HDFC Securities notes that Friday’s recovery from lows could signal a potential bottom reversal, with immediate support at 24,500 and resistance around 24,950-25,000. Dhupesh Dhameja from SAMCO Securities takes a cautiously bearish stance, suggesting that while a temporary pause in selling pressure is possible, sustained upward momentum is essential for confirming any bullish trend. The critical resistance at 25,000, coupled with significant call writing, presents a challenge for further gains. A drop below 24,690 could lead to increased selling pressure, dragging the index toward 24,500-24,300.
Disclaimer: This market update is for informational purposes only and should not be considered financial advice. The information provided is based on current market conditions and may be subject to change. Always conduct your own research and consult with a financial advisor before making any investment decisions. The author does not accept any liability for losses or damages arising from reliance on this information.
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