Nifty MidCap sees breakdown, can dip 8%; SmallCap clinches to key support

The Nifty MidCap index can slip another 4%, or extend the fall towards 19,600; hints the technical chart. The SmallCap index is yet to confirm a downside breakout.

Equity benchmark indices have been grappling with fears of a likely all-out war between Israel-Iran as the conflict now completes a week. Amid the consolidation, the National Stock Exchange (NSE) benchmark index has declined over 1.5 per cent from its recent high of 25,222 registered last week; while the broader indices - the Nifty MidCap 150 and the Nifty SmallCap 250 were down close to 3 per cent each.  The Nifty MidCap index, in particular, has flagged a bearish signal on the technical charts, as it closed below the trend line support on Wednesday. On the other hand, the Nifty quotes comfortably above its trend line support, while the SmallCap is seen clinking to the key short-term bullish pivot.  FOLLOW STOCK MARKET UPDATES TODAY LIVE  Technical charts show that the super trend line support for the Nifty MidCap index stood at 21,367. Whereas, the key support in case of the Nifty and the Nifty SmallCap indices stand at 24,512 and 17,102.  ALSO READ | Nifty chart shows Golden Cross formation; will its 6-year history hold?  Here's a likely outlook on the broader indices - Nifty MidCap 150 and the Nifty SmallCap 250. 

Nifty MidCap 150 index

Last close: 21,359  Downside Risk: 4 - 8.2%  Support: 21,091; 20,800; 20,483  Resistance: 21,700; 21,900  Even as the Nifty MidCap index has closed below the super trend line support yesterday, the short-term bias is likely to remain cautiously positive as the index has been making higher-highs and higher lows on the daily chart; and the index is likely to witness the formation of 'Golden Cross' soon. CLICK HERE FOR THE CHART  As such, the recent low of 21,091 is likely to act as a near-term support; break and sustained trade below the same can trigger a fall towards the 200-Day Moving Average (200-DMA), which stands at 20,483 - this implies a likely downside risk of 4.1 per cent from the last close.  Meanwhile, the 50-DMA at 20,416 is seen climbing towards the 200-DMA - a crossover of the same, shall signal fresh positives for the Nifty MidCap index. In case of an extended fall, the MidCap index can drop to 20,800 and 19,600 levels, suggests the medium-term chart. In case of a pullback, the index is likely to face resistance around 21,700 and 21,900 levels.  ALSO READ | This Adani-group stock flags BIG bullish signal; can it double from here? 

Nifty SmallCap 250 index

  Current Level: 17,144  Downside Risk: 9.6%  Support: 17,034; 16,685; 16,100  Resistance: 17,300  The Nifty SmallCap index is seen quoting around its trend line support, which near-about coincides with the 20-DMA support around 17,034 levels. Technical chart shows that the index was quoting in an overbought zone, and hence a corrective phase seemed warranted. CLICK HERE FOR THE CHART  The Nifty SmallCap index may seek support around its 200-DMA, which stands at 16,685; below which a bigger fall towards 15,500 levels seems possible. Interim support can be anticipated around 16,100 levels. On the positive side, the index will need to trade consistently above 17,300 to gain upside momentum.