Technical view by Nooresh

Time to look beyond Nifty And Sensex —- Midcaps/Smallcaps are available at 12-15k Sensex levels.

A quick conclusion of the analysis on BSE Midcap Index



 Although the benchmark indices Nifty and Sensex did go back to touch the 2008 highs the midcap and small cap indices came nowhere close to the 2008 levels. Currently the index is down 38% from 2008 highs whereas Sensex and Nifty are down 20-22% from 2008 highs.

 From the recent peaks of Nov 2010 the index is down 27% as well but is just above the February lows.
With a severe under-performance in the midcap index it suggests that the current rally till 21k/6.3k Sensex/Nifty was in no ways a euphoric rally and the current downmove remains a correction and we might be in the last leg of it. Short Term supports are placed at 5900-6100 and every dip till those levels would be an interesting time to look for selective buying.

 Surprisingly the index is closer to the peaks of May 2006 and Feb 2007. The similar peaks for Sensex were at 12700 and 14700. This indicates Midcaps are already at levels equivalent to 13-15k Sensex.

 The relative resilience to the index fall suggests there is no panic in the broader segment and we suggest the current dip is a good opportunity to look for quality midcaps.


GVK Power, Lanco Infra, NCC Limited , IRB Infra and Jaiprakash Associates ( index ) are in the process of making long term bottoming out formations and any sharp fall in them can be used for slow buying.


Some more index charts













Happy Investing,


Nooresh Merani

Article by Nooresh Merani

Nooresh has written 2532 articles.

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{ 6 comments… add one }
  • Mihir August 11, 2011, 09:17

    hey Nooresh,

    images are not visible…is just me or for everybody..

    thanks again!

  • Luis da Silva August 11, 2011, 12:40

    Dear Nooresh,

    What are your views on buying Bharati Shipyard @CMP Rs100 for a 12 month target of Rs.150. Would really appreciate your respected views.


    • nooresh August 17, 2011, 00:12

      Hi Luis,

      I dont have a fundamental view on the above stock. Technically no reversal signs yet

  • Ravi August 16, 2011, 23:15


    Could you please tell me Lanco Infra any stop loss need to consider.I have started buying slowly (around 750@18.25rs) . Thanks for your valuable input


    • nooresh August 17, 2011, 00:10

      Hi Pravee,

      One needs to be very slow and keep a view of 1-2 years and not expect any fireworks. This should not be a core portfolio but a small part of it. Not a trading call !

  • bhanu August 18, 2011, 12:19

    hi Nooresh,

    can I average hitech plast at CMP 78?


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