Indices
Wednesday, October 03, 2012
GRIP OF BULLS:
BSEMIDCAP: (03-10-2012)
It closed @6704.36 levels. It closed above crucial resistance of 6654 levels as per chart attached, its very strong sign & it indicates there is much more room left in Midcap segment.
Midcap Euphoria may continue in consolidation phase of nifty as well & we are heading towards equality target of 7792 in short to medium term in BSE midcap as per chart attached.
So, any kind of decline or also at current levels, is a good opportunity to BUY Midcap ideas
These all 3 Indices closed above their 20 MSMA after long consolidation as per chart attached. Their Momentum Indicators are in BUY.
NIFTY/SENSEX (Last 11 Month Consolidation) below 20MSMA as per chart attached.
BSEMIDCAP (Last 17 Months Consolidation) below 20 MSMA as per chart attached.
This indicates Strong UP Ward rally will continue further from medium term perspective.
Its also indicates one kind of breakout from Range or consolidation Phase.
We formed bullish base Triangle kind of pattern on other Indies like-BSE MIDCAP & BSE SMALL CAP etc in recent bottom of Aug-2012 as per chart attached. It’s very powerful bullish pattern as far as overall trend of market, leads to big rally in medium term. It was same happened on May-2010 as per chart attached of BSE Midcap & rally lasted till November-2010. (i.e. – 7 Months). Not found any other examples better than this. Only difference between current triangle & earlier is that it was their in sensex & nifty as well in 2010 example but this time it’s only on BSE MIDCAP & BSE SMALLCAP.
In that case Midcap & small cap may continue to do well irrespective of smaller correction in Nifty/sensex stocks or rotation in nifty/sensex stocks because it has started rally recently or late & remained under performer when nifty/ sensex were rallying & Possibly we may continue to rally till Feb-2013 (i.e. - Till Budget, 7 months from here on) from medium term perspective.
Many midcap & smallcap stocks were showing same bullish structure on charts. So one can concentrate on midcap & small cap stocks with good risk reward at current levels of market or any kind on decline form medium term higher levels targets.
Although my first view for recent rally is that it will last at least till Diwali (i.e. - till November-2012) because many Tops & bottom both has formed at Diwali.
Secondly, it may last till budget as well based on above analysis (i.e. - till- FEB-2013).
TIME WILL CONCLUDE THE SAME.