Nifty and CNX 500 Technical View.

Nifty Technical View

• Many bottoms at 8500.
• Resistance at 8750-8800.
• Can it see a move beyond this range in coming weeks.
• As the trend is still up the assumption would be a breakout on upside till 8500 holds.

CNX 500 Technical View

• CNX 500 is a stronger higher top and higher bottom.
• As the trend is up assumption is a breakout beyond 7600-7650 resistance mark.
• Downside 7350 remains the trend change point.

It would be interesting to watch if we see follow up action out of this range in next 2-3 weeks. A triangle consolidation is also a pattern where one can look for a long strangle.

Although the benchmark indices are consolidating and yet to breakout on the upside but the microcaps/smallcaps are seeing a strong move.

Today almost 25 stocks were on a 20% circuit on BSE.

In simpler terms.

If you have an #exit plan and #riskmanagement the momentum in #smallcaps you have to #ride. If no such #plan just #hide and stay #aside.

Be selective and manage risk.