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Nifty Midcap 100: 27382.75 weekly change (1.34%)

Observation

* On the monthly time frame the MIDCAP 100 index has been forming a higher high higher low patter since June 2020. The Bollinger bands plotted on the monthly time frame can be seen expanding, indicating expanding volatility on the higher time frame.

* On the weekly time frame we can see the prices resuming its up move after breaking out of 11 week consolidation phase on May 2021. this up move came in after the prices found support near the 20 Week SMA which shows strong bullish undertone of the sector..

* In the last week, the NIFTY MIDCAP 100 Index has created a fresh Life Time High @ 24478.85 and has managed to sustained near higher levels. The price action points towards the possibility of the MIDCAP 100 outperforming the NIFTY in the coming weeks.

* On the indicator front the RSI plotted on the weekly chart can be seen placed above the 50 mark since June 2020, currently it can be seen moving higher, pointing towards the presence of bullish momentum in the prices.

* On the upside 27873 (61.8% extension level of the rise from 16013-24740 projected from 22480) will act as a resistance level above which we can expect the 29339 (78.6% extension level of the rise from 16013-24740 projected from 22480).

* The 2 week low of 26835 will act as a red flag level, if the prices breach below this level we might see the prices move lower towards the 25894 (Swing Low).

Inference & Expectations

* From the long term perspective, the NIFTY MIDCAP 100 seems to be in a strong bullish phase.

* The short and the medium term charts the price action suggests that the prices might break out of a consolidation, and outperform the NIFTY.

* The primary trend of the NIFTY MIDCAP 100 index remains to be strongly bullish, from a medium term perspective we can expect the prices the move higher towards the 27873 mark immediately. If this level is breached we can expect the prices to move higher towards 29339 levels.

* Our Bullish view will be negated if the prices breach below 26835 mark. If this level is breached we can expect further down move towards 25894 levels.

NIFTY SMALLCAP: 10026.35 weekly change (1.24%)

Observation

* On the monthly time frame the NIFTY SMALL CAP 100 can be seen forming a higher high higher low pattern since June 2020.

* In the last week, the sector has made a fresh All Time High @ 10064.85 and it has also sustain above 10000 mark which shows strong positive sentiments of the sector for the medium to long term.

* On the daily charts, we witnessed a rational up trend in NIFTY SMALLCAP 100 with the bullish formation of Higher Top Higher Bottom pattern since April 2020.

* We have seen the Bollinger bands on the weekly chart wherein the prices moving between the upper Bollinger bands and the 20 week SMA since July 2020 which indicates high volatility on the positive side for medium to long term.

* On the indicator front the RSI plotted on the weekly time frame can be seen placed above the 50 mark since June 2020 and is currently forming higher high higher low pattern as the prices move towards the fresh life time highs, indicating the presence of strong bullish momentum in the trend.

* Going ahead the we can expect the index to test the 10258 (78.6% extension level of the rise from 5475-8568 projected from 7827), if this level is breached we can expect the prices to move higher towards 10921 (78.6% extension level of the rise from 5475-8568 projected from 7827).

 The Key support level to watch out for on the downside will be 9699 (2 week low). If this level is breached we can expect the prices to move lower towards 9291 (Swing Low).

Inference & Expectations

* The simple price analysis tells us that the index is in a strong bullish phase from a long term perspective.

* Looking at the price action of the past few weeks, we can safely assume that the SMALLCAP 100 index will outperform the benchmark NIFTY in the coming weeks.

* We expect the index to test fresh life time highs and take the prices higher towards 10258 immediately. If the prices manage to breach and sustain above this level we can expect further up move towards the 10921 levels.

* On the down side the red flag level to watch out for will be the 2 week low of 9699. if the price breach below this level we can expect the prices to move lower towards 9265 levels.

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