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NIFTY MIDCAP 100 : 31271 weekly change (-2.05%)

Observation

* NIFTY MIDCAP 100 on the monthly time frame has been in a flawless uptrend and the prices have been forming a classic higher high higher low pattern since April 2020. A simple bar chart analysis will say that the long term trend of the Midcap 100 index remains bullish.

* Ever since the index tested a life time high of 33243 the prices have been moving sideways and have been witnessing choppy moves.

* On the weekly chart we have shown the Bollinger bands, wherein we can see that the prices have remained above the 20 Week SMA Since June 2020, and have been moving between the upper band and the 20 Week SMA.

* The RSI plotted on the weekly time frame can be seen placed above the 50 Mark since June 2020, currently it is showing signs of moving lower towards the 50 mark. Indicating exhaustion in the bullish momentum.

* Going ahead the 30600 (Multiple touch point level) will act as a key support level. If the prices breach below this level, we might see the prices move lower towards the 29838 mark (swing low).

* The 32259 (Previous Week high) will act as a key resistance level, if the prices breach above the 32259 mark we might see the price resume its up move and head towards the 33243 (Life Time high).

Inference & Expectations

* The NIFTY MIDCAP 100 has been moving sideways ever since the prices tested the life time high of 33243.

* The price action on short and the medium term charts suggests that the prices are currently consolidating.

* The technical parameters mentioned above point towards the possibility of exhaustion of momentum in the trend.

* Going ahead we expect the prices to move in a range between 33243 to 29838 for the short to medium term, if the prices breach either side of the range then we might see the prices will move in that direction.

NIFTY SMALLCAP 100: 11036.90 weekly change (-1.26%)

Observation

* On the monthly time frame, the NIFTY SMALL CAP 100 index has been forming a higher high higher low pattern, indicating that the bulls are in control of the long term trend.

* On the weekly time frame, the prices seem to have entered a corrective phase after testing a high off 11876.

* On the weekly chart we can see that the prices have been moving between the upper Bollinger band and the 20 Week SMA since June 2020.

* On the indicator front, the RSI plotted on the weekly time frame (63) can be seen forming a lower low pattern ever since the prices entered a corrective phase, indicating exhaustion in the bullish momentum

* Going ahead 10674 (20 Week SMA) will act as a support level, if the prices breach below the 10674 mark, we might see the prices move lower towards the 9829 (23.6% retracement level of the rise from 3202-11876). 

* The previous week high of 11312 will act as a key resistance level, if the prices breach above this level, we might see the prices move higher towards 11876 (Life Time High).

Inference & Expectations

* NIFTY SMALLCAP 100 from a long term point of view seems to be in a strong bullish trend

* The price action on the medium and the short term charts points towards the possibility of the prices moving in a corrective phase.

* Going ahead the key support level is placed at 10674. if the prices breach below this level, the correction will accelerate and we might see the prices move lower towards the 9829 mark.

* The above analysis will stand negated if the prices breach above the 11312 mark, post which we might see the prices resume its up move and test the 11876 mark and the eventually move towards the fresh life time highs.

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