Weekly Technical Outlook - NIFTY MIDCAP 150 : 10604.65 weekly change (+2.45%) By GEPL Capital
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NIFTY MIDCAP 150 : 10604.65 weekly change (+2.45%)
Observation
* After correcting about 19% from the life highs of 12338 Nifty Midcap 150 bounced after making a low of 9990 and formed a bullish Engulfing candle pattern on the weekly charts.
* On the daily charts, the index has formed a double bottom like formation and is starting to move higher.
* The index has overhead resistance in the zone of 10650-10750 which is the 20 Day SMA (10643) and the recent swing High.
* On the indicator RSI plotted on daily is showing a positive divergence with the double bottom formation.
Inference & Expectations
* The NIFTY MIDCAP 150 is showing early signs of reversal after nearly 19% correction.
* On the upside the resistance for the Index lies at 10750 if the Index breaks above this level it can move towards 11348 marks.
* The current week low of 9990 will act as an important support on the downside for mid term.
* Going ahead we expect the prices to give a bounce towards 11348. On the flip side a break below 9990 will neglect our bounce back view.
NIFTY SMALLCAP 250 : 9105.90 weekly change (+3.43%)
Observation
* Nifty Small cap 250 after correcting about 20% from the Jan 2022 highs the index has bounced sharply from lows of 8428 and formed a bullish Engulfing pattern.
* In the current week the index did not breach the previous swing low unlike the nifty and has shown relative outperformance.
* The index has broken out of a double bottom formation and closed above the 20 Day SMA (9016).
* The RSI indicator plotted on weekly has formed a bullish hinge near the 40 mark and started moving higher.
Inference & Expectations
* The NIFTY SMALLCAP 250 is showing relative outperformance and has breached above the 20 Day SMA (9016), whereas the Nifty and Nifty Midcap 250 still trade below 20 Day SMA. The upside resistance for the index is placed at 9245 above which the index can move higher towards 9600
* The 21st Feb week low of 8428 will act as an important support on the downside for mid term.
* Going ahead we expect the prices to give a bounce towards 9600, whereas on the downside a break below 8428 will neglect our bounce back view.
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