The Nifty50 closed below 14700 much below the crucial support of 50-Days Simple Moving Average placed at 14,723.
We reiterate that in any bull run when the benchmark goes into some consolidation; it’s the MIDCAP and SMALLCAP which outperform and this is what is happening.
There are as many as 28 stocks in S&P BSE 500 index that rose 10-30 percent for the week ended on May 14 that include names like BEML, Wockhardt, Suzlon Energy, Indian Bank, SpiceJet, Birla Corp, PTC India, Omaxe, and Venky’s India Ltd etc.
“After seeing unprecedented up move since the start of the year the BSE Metal Index fell by 4 percent this week.
“PSU stocks were major gainers this week led by names like Coal India, IOC, Power Grid, and NTPC.
Equity benchmark snapped past two weeks’ winning streak amid volatile global cues.
Technical experts see the index consolidating within a band of 14,400 on the downside, and 14,900-15000 levels on the upside.
“Capitalise dips towards 14400-14500 to accumulate quality large-cap and midcaps.
Shah says that his preferred large caps stocks include names like HDFC Ltd, Reliance Industries, Titan Company, Berger Paints, Tata Motors, SAIL.