Decoding the Mystery Behind Dec 20 Fall - Part 33. Nifty Small Cap 100 - 3rd highest fall today - 3.63%
Monthly - Upward Parallel Channel BO + Cup & Handle BO confirmed at Monthly as of Nov
Weekly - The Customary BO Retest process in progress. Today's fall has formed a Bearish Engulfing Candle, but only by weekly close we can confirm if it is still an Engulfing Candle or a smaller one with a wick at bottom.
Folks in IT / Agile process would use the term "Definition of Done.....which says "Anything is not Done until its fully complete" - So wait for the weekly close to derive the real story
CNXSMALLCAP trade ideas
small cap, big move?small cap seems to have done a BO, if traditional patterns to be considered, a pennant has formed and BO is already there, this may take smallcap index to around 14800 which is also the upper trnedline for long term.. this maybe the time of smallcap, this will surely take time and may have few consolidation phases within it.
NIFTY SMALL CAP, FIBONNACI with MA 100 SUPPORTnifty 50 has made a good recovery after 20th June, same followed by the nifty small cap.
check the fibonnaci levels, and there's a good support of MA 100, after 20th june.
many nifty small and mid caps have to get there bull run, so this became a point of breakout.
speaking about breakouts, it happens in the triangle pattern. so you could check the blue colour pattern drawn, its greatly forming the pattern.
so there could be a possible of breakouts.
many investors could step in, as nifty 50 will reach its good levels, then big FII-DII, could come take positions in nifty mid cap and small caps.
LASTLY, do even check the rsi, breaking the lower highs, and lower lows pattern.
SMALLCAP - BUY ON DIPS MARKETThe current DIP in SMALLCAP INDEX is an opportunity to buy. Weekly MACD is clearly showing until year end we will see 15% Rally in Smallcap index. Highlighed Resistance in RED.
9100 and 8900 levels are crucial for the above rally.
Personally belive that retest of Breakout is done. Morning markets might be soft but will recover by End of the Day and probably close in GREEN.
Will be adding below stocks today:-
ZUARI 175
AEGISCHEM 248
ESTER 141
KOPRAN 180 (Technically is still weak but if you like to invest in value then it is right time to start nimbling)
Small cap 100 Forming a Leading Diagonal Elliott wave structureNSE:CNXSMALLCAP
Sharing my Elliott wave analysis and work on Nifty small cap 100 index. Tried to best fit the labeling based on the rules and guidelines.
The index has formed an overlapping 3 wave structure called a Leading diagonal from the lows of 2004.
My conclusion now is that we are in the primary wave 5 degree with first up-leg complete in Jan 2022.
We can expect a minimum retracement of 23.6% for a target of 8812.75.
I look forward to know your views on the analysis, Feel free to share any alternate count or point out where I may be violating Elliot wave rules.