Nifty / Small Cap 100
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The relative strength of Nifty vis a vis Small Cap index is showing signs of a reversal from its slanting trend line after a period of 56 months of underperformance.
What does relative strength (RS) signify?
It suggests whether the underlying financial asset (in this case Nifty) is outperforming or underperforming against another financial asset (in this case Small Cap 100)
It means, in case of this RS slanting upwards
In rallies Nifty will do better than Small Cap 100
In corrections Nifty will fall less than Small Cap 100
If we go by the past reference as plotted, then a big reversal could be happening in terms of time for a period of 2 years at least. The horizontal lines as marked are trigger levels one needs to review.
Investing in Large caps (Nifty) appears safer than Small caps from here onwards unless this flips and continues to decline.
All the best with your investing & trading decisions
The relative strength of Nifty vis a vis Small Cap index is showing signs of a reversal from its slanting trend line after a period of 56 months of underperformance.
What does relative strength (RS) signify?
It suggests whether the underlying financial asset (in this case Nifty) is outperforming or underperforming against another financial asset (in this case Small Cap 100)
It means, in case of this RS slanting upwards
In rallies Nifty will do better than Small Cap 100
In corrections Nifty will fall less than Small Cap 100
If we go by the past reference as plotted, then a big reversal could be happening in terms of time for a period of 2 years at least. The horizontal lines as marked are trigger levels one needs to review.
Investing in Large caps (Nifty) appears safer than Small caps from here onwards unless this flips and continues to decline.
All the best with your investing & trading decisions
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