The NIFTY Smallcap 100 Index is designed to reflect the behavior and performance of the small capitalized segment of the financial market. The NIFTY Smallcap 100 Index comprises of 100 tradable, exchange listed companies.
View- Bullish
Let’s look at the thorough technical analysis of Nifty SMLCAP 100 grab your cup of coffee.
CNXSMALLCAP100 Weekly time frame indicates that a golden crossover was panned out in the month of January later this year. As you can see when that happened earlier on 24th march 2014 it topped out in 2018 and we witnessed a sharp bull phase upside for 4 years (Round figure).
Well, looking at the current scenario this crossover panned out in January and we are now expecting at least 2 to 3 years of bull phase in small cap space.
Also it is very near to it’s top once that happens bulls will have an open arena to crush the bears.
Monthly chart shows that after 1st April,2020 prices did not close below the previous month for even once which shows a very strong trend.
Taking two swings from 2008 top and 2009 bottom previous bull phase ended by completing it’s 1.618 retracement and we saw a long term top.
Now here if we manage to cross the Top Target is going to be 1.618 retracement which is 13644 just like before taking the two swings of 2018 high and 2020 bottom this target is estimated.
If this setup plays out well position yourself accordingly and enjoy the next Bull phase which might last several Years.
Read about Golden crossover at- https://www.tradetales.in/golden-crossover/
Disclaimer- The analysis are only for educational purposes. Trade tales is not liable for your Profit or loss. Kindly refer to your financial advisor before taking any decisions.
PEACE