In addition, both indices have outperformed the other indices when compared on a three-month, six-month, and on an annual basis. In the last three months, Nifty Midcap rose 18.05 per cent and Nifty Smallcap 250 was up 19.99 per cent.
In the last six months, both indices have clocked gains of 12.75 per cent and 11.25 per cent, respectively. Finally, even on a 12-month basis, both indices rose 33.44 per cent and 30.36 per cent, respectively – clocking the highest gains when compared to other major indices including Nifty 50 and Nifty 500, according to Motilal Oswal.
Meanwhile, the Nifty 50 has now reached a new milestone, surging past the 19,000-level to set a fresh all-time high surpassing its previous peak in December 2022. The realty sector continued its aggressive upward movement and rose nine per cent conversely, the IT sector remained relatively flat, while the healthcare sector rose nine per cent in June.
Indications are in favor of further consolidation in the index so participants have no option but to focus on stock-specific opportunities, according to analysts.
‘’The recent surge in the US markets is encouraging but we need sustainability of the move. Meanwhile, Nifty has been hovering within the 19,300-19,550 zone and either side break would offer cues over the next directional move,” said Ajit Mishra, SVP – Technical Research, Religare Broking.
Global markets
Both emerging and developed markets delivered positive performance, with Brazil emerging as a standout performer, clocking gains up to 15 per cent in June. Within the US market, the NASDAQ 100 and S&P 500 indices recorded gains of 6 per cent with the IT sector remaining a prominent contributor to overall returns of S&P 500 last month.
The US inflation rate has halved from its peak of nine per cent in June 2022, now standing at four per cent. Concurrently, the 10-year yield has remained stable, reflecting a balanced market outlook, according to Motilal Oswal.
The crude oil market witnessed a moderate gains in prices last month, after the output cuts announced Saudi Arabia, coinciding with the US Federal Reserve’s decision to pause rates.
In contrast, the Bullion market experienced a decline in gold and silver prices. The crypto market showed signs of recovery, as Bitcoin crossed the 30,000 milestones once again, marking a notable 12 per cent rise in June.
Technical View
Analysts largely expect the Indian stock market to remain in consolidative mode with support at lower levels. For Nifty, the daily chart has formed a bearish engulfing pattern, indicating a potential reversal in the market. Despite the bearish signal, the overall trend remains positive as long as the price stays above the support level at 19,300, said analysts.
‘’It is a level (19300) where Put writers have maintained a heavy positions, meaning that if the price drops below this level, it could indicate further downward movement,” said Rupak De, Senior Technical analyst at LKP Securities.
‘’Below 19,300 Nifty may fall down towards 19,000-18,900. On the upside, there is resistance at 19,500, suggesting that the price may struggle to move beyond this level. A decisive move above 19,500 might lead the writers to unwind their positions,” added De.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 13 Jul 2023, 03:07 PM IST