December 13, 2023
1 min read

Nifty Midcap and Smallcap Indices Carry 25% Premium

Though the domestic growth outlook remains strong, the risk of El Nino is expected to keep the market under pressure, he added…reports Asian Lite News

The Nifty midcap and smallcap indices, with robust rallies of 42 per cent and 49 per cent on a YTD basis, respectively, now carry a 25 per cent premium to their long-term averages, signalling potential valuation concerns, Vinod Nair, Head of Research at Geojit Financial Services, said on Tuesday.

Following the recent impressive surge, the Nifty50 underwent a consolidation phase on Tuesday due to anticipated elevated November inflation in the country, driven by rising food prices, which may potentially delay RBI policy cuts. In contrast, the US inflation outlook remains stable, which could influence the upcoming US Fed policy, Nair said.

Though the domestic growth outlook remains strong, the risk of El Nino is expected to keep the market under pressure, he added.

Rupak De, Senior Technical Analyst at LKP Securities, said, “Nifty has formed a bearish engulfing pattern on the daily chart, suggesting a possibility of a bearish reversal. On the higher end, call writers have built a heavy position at 21,000. On the lower end, put writers are heavily present at 20,800 and 20,900.

“Therefore, Nifty is likely to remain mostly sideways to negative as long as it remains below 21,000. Only a decisive move above 21,000 might induce a resumption of the uptrend. Support is placed at 20,800, below which the index may consolidate further.”

ALSO READ-Serum Life Sciences Sets London Record at £138 Million

Previous Story

Crucial Role of Nutrition in Pneumonia Recovery

Next Story

Teaser of ‘Malaikottai Vaaliban’ Reveals Grandeur

Latest from Business

PM Modi: India poised to lead next tech wave

PM Modi underscored that the country is poised to lead the next wave of digital transformation in 5G…reports Asian Lite News Prime Minister Narendra Modi on Wednesday hailed India’s progress in expanding

India Hits 100GW Solar

The expansion is not only in scale but also in quality, with significant capacity dedicated to high-efficiency modules. Many manufacturers have adopted vertically integrated operations, enhancing quality, reducing costs, and improving resilience

Jewellery Exports Shine Bright

The GJEPC noted that product diversification has played a major role in sustaining momentum. Lightweight and contemporary designs are gaining traction among younger global consumers, helping Indian jewellers appeal to a wider

China Curbs Hit India’s Electronics Boom

The ICEA noted this results in delays, inefficiencies, and higher costs — alternatives from Japan or Korea cost up to four times more than Chinese machinery. India’s transformation into a global electronics
Go toTop

Don't Miss

Nifty’s downward trend continues with third weekly fall

Nifty fell for the second consecutive session on Aug 11,

Indian Stock Market Opens Higher Ahead of Holi Amid Mixed Global Cues

Market watchers had anticipated a flat to slightly bullish start