NIFTY SMALL CAP INDEXHello & welcome to this analysis on the small cap index
CNX Small Cap Index activated a Bullish Harmonic Deep Crab on 24th Feb at 9350. From there it has now move all the way 10900 and on its way created 4 gap ups which is usually the sign of a strong trend (typical of Elliott Wave 3)
What is most interesting is on 4th April it activated a Bullish Island Reversal as highlighted in the chart suggesting "if this holds" then the index is all set for a v strong up move. We have already seen a similar kind of move in Bank Nifty when it made a Bullish Island Reversal on 10th March at 34500 from where its rallied 4000 pts.
Levels wise a "daily close above 10975" would open the passage for 11700 with strong support in the island region of 10600-500 for now.
Happy Investing!
