Nifty SmallCap 100 Weekly Chart Analysis

2 nov.

Chart Pattern Identification:
The Nifty SmallCap 100 index is currently trading within a well-defined ascending channel that has held for over 1.5 years. Recently, the price action has shown a Tweezer Bottom/Piercing Pattern near the lower boundary of this channel, which is typically a bullish reversal signal. This pattern indicates strong buying interest at this support level and suggests a potential rebound within the channel.


Key Support and Resistance Levels:
-Support: The lower boundary of the channel, around 17,500–17,700, is acting as a key support level, where the Tweezer Bottom pattern emerged. This level aligns with the channel’s trendline, reinforcing its significance.
-Resistance: Immediate resistance is at the channel’s midline, near 19,200–19,500. If this level is breached, the next resistance lies at the upper channel boundary, around 20,000.

Directional Scenarios:
-Bullish Scenario: A successful rebound from the 17,500–17,700 support and a follow-through above 19,200 could lead to a rally towards the upper channel boundary at around 20,000. Increasing volume on bullish candles would strengthen this scenario.
-Bearish Scenario: If the index fails to hold above 17,500 and closes below the channel, it may signal a breakdown, with potential downside toward the next support level at 16,500.

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