Nifty MidCap, SmallCap indices break 20-DMA support; can fall another 9%

In 2024 so far, the Nifty MidCap and SmallCap indices have slid to the 100-DMA in times of a market correction, show charts; check key levels here

The broader indices were seen trading on a weak note for the third straight day on Friday, and were down over 1.5 per cent. In the process both the NSE MidCap 150 and the NSE SmallCap 250 indices dipped below their respective short-term (20-DMA) daily moving averages in today's intra-day deals.

The Nifty MidCap 150 index was down 1.5 per cent or 315 points at 20,940 levels as of 10.30 AM. The index had hit an intra-day low of 20,884 so far. In comparison, the NSE Nifty 50 index had slipped 0.4 per cent to 24,708, after registering a fresh life-time high at 24,854.80 this morning.

 

Similarly,the Nifty SmallCap 250 index was down 1.5 per cent around 1,7300 levels. 

What's moving these indices?

Among midcaps, JSW Infra was the major loser - down 5.5 per cent followed by Persistent Systems and Apollo Tyres down almost 5 per cent each. FACT, Oil India, The New India Assurance Company and ZF Commercial Vehicle Control Systems down more than 4 per cent each.

Those apart, Dixon Technologies, Dalmia Bharat, NMDC, Paytm, GMR Infra, GIC RE, Syngene International, Tata Communications, CG Power and Piramal Enterprises declined over 3 per cent. 

Meanwhile, among smallcaps, Chennai Petro was the top loser as the stock tumbled nearly 8 per cent. Apar Industries and Borosil Renewables were the other major losers, down 6 per cent each. 

MCX India, CIE India, Raymond and MRPL shed 5 per cent each. Jupiter Wagons, CESC, Amber Enterprises, Inox Wind, Aster DM Healthcare and Shyam Metalics were the other prominent losers, down more than 4 per cent each.

Key levels to watch out for on the Nifty MidCap and SmallCap indices

Nifty MidCap 150

Current Level: 20,940

Downside Risk: 8.6%

Support: 20,825; 20,560; 20,160

Resistance: 21,085; 21,245

The MidCap index has shed 3.1 per cent from its recent peak of 21,554.40 hit on July 16. At present, the index quotes below its 20-DMA, which stands at 21,085 levels. The Nifty MidCap index has near support at 20,825 levels followed by 20,560.

So far this calendar year, the Nifty MidCap index has eventually sought support around its 100-DMA in case of price correction. The 100-DMA, at present, stands at 19,130 - implying a possible downside risk of 8.6 per cent. Interim support, in the form of 50-DMA, stands at 20,160. CLICK HERE FOR THE CHART

Key momentum oscillators, both on the daily and the weekly scale, have shown negative crossovers; hence the index may face downward pressure in the near-term.

In case of a pullback, the index is likely to face resistance around its 20-DMA followed by 21,245.

Nifty SmallCap 250

Current Level: 17,300

Downside Risk: 9.1%

Support: 17,180; 16,880; 16,510

Resistance: 17,430; 17,975

The SmallCap index seems to be moving in tandem with the MidCap, and has shed 3.3 per cent from its summit of 17,885.70 hit on July 16. At present, the index quotes below its 20-DMA, which stands at 17,430 levels. The Nifty SmallCap 250 index has near support at 17,180 and 16,880 levels.

The 20-DMA is now likely to act as an immediate resistance for the index. The next key hurdle stands at 17,975 levels.

Sustained trade below the key support levels, can trigger a fall towards the 100-DMA, which stands at 15,725 levels, with interim support seen around the 50-DMA at 16,510. CLICK HERE FOR THE CHART