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NIFTY Midcap 100 : 29939.30 weekly change (-4.05%)

Observation

* NIFTY Midcap 100 has started moving in a lower high and lower low formation.

* On the weekly chart as well as daily charts prices have formed a bearish Marobuzu candlestick pattern (bearish formation). Along with this the prices have also broken below the 20 day Moving Average which is suggesting selling pressure at higher levels.

* The 20 day SMA has crossed below the 50 day SMA giving a negative crossover. RSI is below 50 which suggests decrease in momentum.

* Going ahead the 28900 is a major support being the previous swing low. A break below 28900 can take the midcap index towards 27900.

* On the upside 31000 (50 day SMA) will be important and break above this level can attract buying interest again in the Midcaps.

Inference & Expectations

* The NIFTY Midcap 100 has started moving in lower highs and lows formation post October 2021.

* The price action on short and the medium term charts suggests that there is a possibility of a correction.

* The prices action and the technical parameters mentioned above point towards the possibility of bearish momentum to continue for sometime.

* Going ahead we expect the prices to head towards the 28900 (previous swing low) and a break below which can drift the index to 27900.

* For the shorter term trend to move up the prices should break and sustain above 31000 (50 day SMA).

NIFTY Smallcap 100 : 10849.55 weekly change (-3.57%)

Observation

* NIFTY smallcap 100 has started moving in a lower high and lower low formation on Daily timeframe.

* On the weekly chart as well as daily charts prices have formed a bearish Marobuzu candlestick pattern (bearish formation). Along with this the prices have also broken below the 20 day and 50 day Moving Averages which is suggesting change in shorter term trend to downside.

* The 20 day SMA has crossed below 50 day SMA giving a bearish crossover.

* On the indicator front, the RSI plotted on the weekly time frame has moved below the 50 mark indictaing bearish momentum in the prices.

* Going ahead 10650 followed by 10250 (Swing Low) will be the important levels to watch ion the Downside.

* Upside trend will reverse only once the smallcap index closes above the 11400 (previous swing high) level.

Inference & Expectations

* NIFTY smallcap 100 has started moving in a lower high and lower low formation on Daily timeframe.

* The price action on short and the medium term charts suggests that there is a possibility of a correction.

* The prices action and the technical parameters mentioned above point towards the possibility of bearish momentum to continue for sometime.

* We expect that the prices can drift down to 10650 followed by 10250 levels.

* The above analysis will stand negated if the prices break and sustain above the swing high of 11400.

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