The sharp correction in midcap and smallcap stocks has undoubtedly increased market anxiety, but the available technical evidence does not yet point to a clear capitulation phase, said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities in an interview with Moneycontrol.
While both the Nifty Midcap 100 and Nifty Smallcap 100 witnessed severe selling pressure during the week, declining by nearly 6 percent and over 7 percent, respectively, the price action currently suggests an acceleration of the corrective trend rather than a final washout, he added.
According to Shah, the 22,180 level remains a crucial support zone for Nifty in the coming week. "Decisive breach below 22,180 may trigger further downside towards 22,000-21,850," he said.
Sudeep Shah bets on Kross, and Bharti Hexacom for next week. "Kross has been moving in a higher high–higher low formation on the daily chart, reflecting a sustained uptrend, while despite the consolidation, Bharti Hexacom continues to trade above its key moving averages, reflecting a positive underlying trend," he said.
Will the Nifty defend the 22,180 level next week as bears gradually gain strength?