NSE:NIFTY NSE:CNXMIDCAP NSE:CNXSMALLCAP Diverging for couple of days. Ideally the broad market shall start picking up.
While Nifty is getting selling pressure near the Highs today. Midcap and Smallcap Index getting buying near support zone.
Midcap and Smallcap shall start picking up from here on.
The Broader Market Indices must converge with the Mainstream...
This chart represents NIFTY/CNXSMALLCAP every time the ratio hits this trendline smallcap are likely to fall until the ratio break the trendline downside!
Post SEBI's circular on Multi Cap this chart warrants attention. The current reversal which has seen the Small Cap Bullish revival is now at a monthly as well as weekly support of a Spread Strength Comparison of Nifty / Small Cap. For further out performance of Small Cap Index over Nifty (Large CAP) this support has to broken decisively. Else it might once again...
