Nifty SmallCap 100 Index took a double breakout 2 weeks back. Was waiting last week for confirmation & it has resumed the trend. (This post was first published on our official facebook page on 12th Jan 2020)
It has broken 38 weeks old downtrend (BLUE LINE) & has risen back & closed above 3.5 year old support (RED LINE) which it had broken down in the last year’s downtrend. Also this RED LINE was acting as a Strong Resistance from lnnast 9 years since 2008, it finally started acting as a support after the DEMONITISATION phase. Index going below this support & finally coming back above it indicates that there is no further downtrend in Smallcap Index. If the index does not closes below this RED LINE in next 2-3 weeks then we can easily comprehend that downtrend has finished.
This ongoing gives a strong indication that we will start witnessing a strong uptrend soon in Smallcap index. We expect that the Index should hit its lifetime highs of 9600 levels in a span of 1.5-3 years timeframe. CMP 6050.
Nifty is already trading above the breakout levels since last 8 weeks.
Midcaps is same story as Smallcaps. The downtrend breakout happened 11 weeks back.
Overall all the major indices are in uptrend or about to go in uptrend. Now the rally may not be fast till certain levels but overall market is bound to go up.
As always markets are supreme & they are confidently ignoring the bad news coming in related to economy on daily basis in media. This is because markets trade on the future projections of economies & companies growth & not on the current NEWS which is actually indicates the happenings of past. It takes a lot of common-sense & wisdom to understand this fact.
But the irony is Common Sense is very Uncommon in Common People. So they will continue to believe in the notions which print, tv & social media wants them to believe in. A smart investor knows that this is a huge opportunity which is not gonna stay longer. There is a reason that majority of common people don’t make it big in equities- Patience, Foresightedness, Discipline & a lot of wisdom is required to run through the long course of Investing. I guess this is where a knowledgeable, competent & an experienced advisor comes in. 😇
