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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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