Below is the day's brief for NIFTY and MIDCAP INDEX

NIFTY


The Index continues to move between the nearest support and resistance represented by the two horizontal black lines in the chart. Though the trend has been up we are now very close to the lower channel and are trading below the neckline of a bearish pattern known as a Head and Shoulder top. For the market to make any kind of meaningful upmove it has to sustain above the 11,600 levels. Looking at the charts though it definitely is the low probability outcome. My understanding points to a correction in the coming few days. Levels of 11,200 could definitely be tested before the Index makes any kind of meaningful base to resume its uptrend.

MIDCAP INDEX


After a couple of days of relative out-performance the midcap Index was under pressure again today. With the outlook for Nifty continuing to be bearish the Midcaps will find it difficult to hold ground. If the correction does set in the Nifty we could see the Midcap Index re-visiting the 16,000 support  levels once again. As an Investor in these times the technical principles would have us sit on the sidelines with no clear direction in the midcaps.