The Indian stock market benchmark indices traded largely flat on Tuesday, tracking mixed global cues amid lingering uncertainty over the US-Iran peace talks. The frontline indices — Sensex and Nifty 50 — fluctuated between gains and losses in a lacklustre trading session.
However, broader markets outperformed the benchmark indices, supported by gains in midcap and smallcap stocks. The Nifty Midcap 100 index touched a record high, with the majority of its constituents trading in positive territory.
The Nifty Smallcap 100 index rose as much as 1.04% to 18,393.10, while the Nifty Midcap 100 index gained up to 0.57% to hit a fresh all-time high of 62,324.20.
On a year-to-date (YTD) basis, the Nifty Midcap 100 index has gained 2.7%, while the Nifty Smallcap 100 index has advanced 3.3%, outperforming the benchmark Nifty 50, which has declined 8.25% during the same period.
Among the top gainers in the Nifty Midcap 100 index, Adani Total Gas shares surged nearly 11%. Other top gainers included Info Edge (India), Tata Communications, JSW Energy, Waaree Energies, Premier Energies, Tata Investment Corporation, Steel Authority of India Ltd (SAIL), and OIL India, which advanced between 2% and 5%.
On the downside, top laggards in the Nifty Midcap 100 index included Container Corporation of India, Rail Vikas Nigam Limited (RVNL), Ashok Leyland, Jubilant FoodWorks, and Colgate-Palmolive (India), with losses ranging from 2% to 7%.
Technical Outlook
Compared with the benchmark Nifty 50 index, the broader market-focused Nifty Midcap 100 has continued to outperform and is currently trading in uncharted territory.
“The Nifty Midcap 100 index remains in a sustained higher high–higher low formation, indicating continued bullish momentum. Recently, we have observed that every dip is being bought near the 50-day exponential moving average (50-DEMA), and investors should continue adopting a buy-on-dips strategy,” said Rajesh Bhosale, Technical Analyst at Angel One.
In terms of key levels, he noted that 60,000 remains an important higher-bottom support zone, while 63,500 is the next key resistance level.
Sudeep Shah - Head of Technical and Derivatives Research at SBI Securities noted that despite scaling a fresh all-time high, the Midcap 100 Index index has formed small-bodied candles with minor wicks on the daily charts over the last two sessions, indicating indecision near the highs.
“The rising ratio line in the Midcap/Nifty ratio chart continues to signal relative outperformance of the Midcap Index versus the benchmark Nifty 50. Additionally, the RSI remains in an upward trajectory, reflecting strong bullish momentum. The index also trades comfortably above its key short-term moving averages,” said Shah.
According to him, the immediate support zone is placed at 61,600 – 61,500 and the index is likely to move higher as long as the index trades above the same.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
