The month of December has brought positive returns for the Nifty Smallcap index in nine out of the last 10 December periods. Repeating the trend, the Sensex and Nifty 50 are now trading close to their all-time high, even while the index significantly underperformed the benchmark indices so far in 2022, declining over 12 percent.
This year's 12 percent decline comes on the back of nearly 60 percent gains in 2021 and 22 percent gains in 2020.
December being good for the Smallcap index has been corroborated by Laurence Balanco of CLSA, who said that the index is poised for a breakout in the near term.
Among the top 10 gainers on the Smallcap index this year, two stocks-- Bharat Dynamics and Deepak Fertilisers-- have doubled in value while others among the top 10 gainers have shot up between 50-90 percent.
Among the top laggards, Metropolis stands out among the known names, declining nearly 60 percent this year. Others include IT names like Mastek, Birlasoft and Quess Corp.
"After three weeks of hesitation, the Nifty looks primed for a breakout with momentum confirmation (daily RSI > 70 would provide momentum confirmation). Such a move would be a bullish event and signal a resumption of the markets long-term uptrend & would provide an initial upside target of 20,185. In addition we see similar potential in the Nifty Small cap Index," Balanco wrote in a note.
First Published: Nov 28, 2022 11:23 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha elections 2024: All you need to know about EVMs and VVPAT; how they work
Apr 20, 2024 1:24 PM
Odisha Lok Sabha elections: Schedule, total seats, Congress candidates and more
Apr 20, 2024 11:39 AM
Lok Sabha Election 2024: Issues raised by Prime Minister Modi have not resonated with people of Tamil Nadu, says Congress
Apr 19, 2024 11:38 PM
West Bengal Lok Sabha elections 2024: A look at Congress candidates
Apr 19, 2024 8:45 PM