StageInvesting:
Small Cap - Why It Is Time To Be Cautious
Look at the following chart of BSE Small Cap Index from 2008 onwards.
Look at the yellow and red lines at the bottom .
Whenever yellow line crossed the red line from up to down, we got a significant correction in the past - range of correction was different ( minimum was 20%) .
It has again happened in this month.How deep it can go , no one can tell in advance. But it is time to be catious.
Small Cap
Learnt an important lesson here. Had posted the above chart and view in the middle of the month (March 17th).
While deciding on montly chart, one should wait for the month -end closing. By month-end, RSI remained above the red line, so the upward trend continued.
Latest view mentiond in the following thread.
[SMLCAP_NIFTY_2024-05-04_16-51-20_dfdf7]
Well, here is little different opinion.
If the chart was published at March end, it might have given more conviction on bearish angle ( a big red candle) . But we got a good recovery in April ( a big green candle) . This shows that there’s still some strength and this also shows the difference between what happened in 2014 vs now ( pink circles). Hence would be bit cautious on taking any view , especially at current levels .
Yes , it is at crucial l…
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