The analyst’s cross-index review shows Nifty 50 is the most stable of the three, while smallcaps remain at risk of further weakness.
SEBI-registered analyst Rajneesh Sharma has analyzed top three Nifty benchmark indices, and his findings show that while the Nifty index respected the trendline support, the broader market story has layers. He noted that the midcaps are attempting a stabilizing act, but needs strength confirmation. And smallcaps are on the edge, with any breach of support bring sharp moves ahead.
Let’s take a look at analyst Rajneesh Sharma’s view across Nifty indices.
Nifty Outlook
For the Nifty index, price action respected the trendline at 24,482 and rebounded, maintaining its structure inside a rising channel, with a higher low forming. Sharma said the index is currently consolidating between 24,482 and 25,099.
The volumes are moderate, which indicates a low-aggression accumulation. Additionally, the absence of momentum divergence and the Relative Strength Index (RSI) at 53 indicates a neutral to bullish stance on the Nifty.
Nifty Midcap Outlook
The Nifty Midcap index bounced from 56,370.55, which was previously a trendline resistance and has now become a support zone. On technical charts, the index is seeing a pullback after breakout, with higher low setup developing and is currently rangebound between 56,370.55 and 57,731.
A confirmed breakdown has led to a sideways reaccumulation phase. Sharma adds that if the index breaches 56,370, its next support lies at 54,973 to 52,979.
Nifty Smallcap 100 Outlook
This index had broken out earlier but was rejected at 19,145, and was now testing its short-term rising trendline. Prices are hovering just above 17,394.25, which he pegged as a make-or-break level.
Sharma adds that the recent pullback has been contained rather than panic-driven, with the overall structure maintaining a higher-high, higher-low. But this will become fragile if the index breaks below 17,394. If it does that, then the next defense zone is seen at 16,770 for the Nifty Smallcap index.
Cross-Index Comparison: Where They Stand
Comparing the three indices, Sharma said that Nifty 50 remains the most technically sound as it holds the structure within a rising channel. The Midcap 100 is in a retest phase: constructive if 56,370 holds, and cautious if it doesn’t. The Smallcap 100 is at an inflection point and may be the most vulnerable below 17,394.
He highlighted that all three indices are in a pullback or a consolidation phases, with no decisive breakdowns yet. While the largecaps have seen a breather, the broader indices are finding their footing.
Given the current market trends, Sharma concluded that it reflected market corrections and not a collapse. He reiterated that support levels remain critical and that traders must not chase moves blindly.
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