What should investors do?
(You can now subscribe to our(You can now subscribe to our ETMarkets WhatsApp channelIt was an action-packed market week as investors experienced a roller coaster ride with highs of a rally after the exit poll, a meltdown on the election results day followed by a complete recovery.The recovery from the results day meant that most of the sectors recouped losses which was reflected in 85 smallcap stocks delivering double-digit weekly returns.
While Emami gained 15.6%, Bayer Crop and Uno Minda were up over 13% each.In the upcoming week, the outlook for the market will be guided by the major domestic and global economic data including India WPI Inflation, China CPI Inflation, UK GDP data, US CPI data, and the Fed's interest rate decision.
All eyes will also be on the key portfolio allocation in the NDA government and initial policy agenda.Analysts said the market will continue to be volatile with an upward biasedness.
"Strong domestic economic data, falling oil prices, and NDA unanimously passing a resolution to elect Narendra Modi as the leader of the coalition has uplifted investor confidence.
What should investors do?
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
It was an action-packed market week as investors experienced a roller coaster ride with highs of a rally after the exit poll, a meltdown on the election results day followed by a complete recovery.The recovery from the results day meant that most of the sectors recouped losses which was reflected in 85 smallcap stocks delivering double-digit weekly returns. About 5 stocks rode the recovery wave and rallied over 25% during the week with the highest return going as high as 64% from Heritage Foods Heritage Foods is a TDP-related company and has seen a surge following a strong show by the regional party in both the assembly and Lok Sabha elections. Modi-led BJP not crossing the majority mark meant that Chandrababu Naidu's TDP emerged as the kingmaker and one of the crucial components of NDA Other top gainers in the smallcap pack include Moschip Technologies(44.9%), PTC Industries (30.3%), Authum Investment(27.9%), V-Mart Retail (26.5%), BL Kashyap and Sons (24.5%) among others.About 8 stocks including Universal Cables, Avanti Feeds, Marathon Nextgen Pokarna, IFB Industries, Ganesh Housing and others have delivered returns between 20-25% in the smallcap pack during the week.In the midcap segment, nine stocks including Emami, Bayer CorpScience, UnoMinda among others have risen in double digits. While Emami gained 15.6%, Bayer Crop and Uno Minda were up over 13% each.In the upcoming week, the outlook for the market will be guided by the major domestic and global economic data including India WPI Inflation, China CPI Inflation, UK GDP data, US CPI data, and the Fed's interest rate decision. All eyes will also be on the key portfolio allocation in the NDA government and initial policy agenda.Analysts said the market will continue to be volatile with an upward biasedness."Strong domestic economic data, falling oil prices, and NDA unanimously passing a resolution to elect Narendra Modi as the leader of the coalition has uplifted investor confidence. Next week's focus will be on allocation of key cabinet portfolios such as Finance, Defense, Roads, Energy, Commerce, and Railways," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.Technically, following the emergence of a bullish candlestick pattern on the daily timeframe, the Nifty index has maintained its upward trajectory."As we assess the near-term outlook, it appears probable that the index will continue to adhere to this range-bound behaviour, with movements expected to hover within the boundaries of 22,600 to 23,400.22800-23000 will act as short-term support, while, 23400-23500 will act as the hurdle for further upside," said Arvinder Singh Nanda, Senior Vice President, of Master Capital.
