India midcaps hit record highs as large-cap indices stall
India's mid and small-cap indices are scaling fresh highs while blue-chip benchmarks remain stuck in a prolonged sideways trend, pushing traders toward stock-specific bets over index derivatives during earnings season.
The Sensex gained 828 points to close at 77,569 and the Nifty 50 added 244 points to finish at 24,206, marking a second straight session of gains. However, these headline figures mask a deepening divergence in the Indian equity market.
While the Nifty remains roughly 8% below its lifetime peak, the Nifty Midcap 100 has already secured a fresh all-time high and the Nifty Smallcap 100 is trading near record territory. Sudeep Shah, Head of Technical & Derivatives Research at SBI Securities, noted that this resilience positions the broader market to sustain its outperformance over frontline indices.
The benchmark Nifty has formed a small-bodied candle with shadows on both ends for a fourth consecutive week, reflecting a prolonged tug-of-war between buyers and sellers. The daily average directional index has slipped to 12.05, confirming an absence of meaningful directional strength.
Declining volatility supports this stock-picker's environment. India VIX fell another 8% to 12.33, sitting well below its immediate resistance of 15.30-15.50. Because the benchmarks are range-bound, Shah advises traders to focus on stock-specific opportunities rather than index futures and options as earnings reports accelerate.
IT sector lags despite TCS bounce
The IT sector remains technically weak despite a recent rally following Tata Consultancy Services' earnings. The Nifty IT index continues to trade below its key weekly moving averages, with the MACD lingering below both the zero line and the signal line. A meaningful trend reversal requires the index to reclaim the 29,000 to 29,100 zone.
TCS shares are showing signs of a strengthening bearish trend with a rising ADX, facing resistance at the 2,170–2,180 rupee level. Infosys has failed three times to hold above its 20-day exponential moving average and remains under pressure below 1,110–1,120 rupees.
Select stocks show breakout momentum
In contrast, Kalyan Jewellers has registered a weekly consolidation breakout backed by surging volume. The stock has closed above its upper Bollinger Band with an RSI above 60, keeping the bullish outlook intact as long as it holds above 425–430 rupees.
Other technically strong names heading into the week include Godrej Properties, DLF, Prestige Estates, Chennai Petroleum, PNB Housing Finance, and Indian Hotels.
