The Nifty 50 index has been in a recovery mode after it dropped to ₹16,847 on March 20 of this year. The index, which is made up of India’s blue-chip companies, was trading at ₹18,261 on Friday, ~8.50% above the lowest point this year. Similarly, the BSE Sensex index has also bounced back.
The best-performing stock in the Nifty 50 index this year is Tata Motors, the parent company of Jaguar Landrover. The company, which will publish its results on Friday, has been boosted by the strong performance of its JLR brand. It joins other automakers like Stellantis and Porsche that have done well this year. Tata Motors have jumped by 33% this year.
Bajaj Auto, a company that manufactures motorcycles and three-wheelers, has also done well, helped by the rising demand of its products. Its shares have jumped by over 27% this year. ITC, a conglomerate that operates tens of businesses has also outperformed, with the shares rising by 25%.
Other top Nifty 50 index best performers this year are companies like Power Grid Corporation, Oil and Natural Gas Corporation, Nestle India, and Eicher Motors. Further, Indian banks have been a bit safe even as their American counterparts have retreated. Kotak Mahindra Bank and ICICI share prices have risen by over 5% while HDFC has jumped by just 1%.
Many Nifty 50 companies have been in the red this year. Adani Enterprise share price has plunged by more than 48% this year after the company was attacked by Hindenburg Research. Other parts of Adani’s conglomerate have been hit as well.
Infosys share price has fallen by 17%, making it the second-worst Nifty company. As I wrote here, Infosys published weak first-quarter results. Other top underperformers in the index are Hindalco Industries, Bajaj Finserv, JSW Steel, and State Bank of India.
The 4H chart shows that the Nifty 50 index has been in a recovery mode in the past few weeks. This recovery has been supported by the 25-period and 50-period exponential moving averages (EMA). The MACD has also moved above the neutral point.
It seems like the index is attempting to retest the year-to-date high of ₹18,880, which is about 3.50% above the current level. A move below the support at ₹18,000 will invalidate the bullish view.
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