Monthly RSI of NIFTY MIDCAP is 89 (Deep overbought Zone). On earlier occasion whenever RSI has crossed above 73 on monthly chart, either it went on sideways or corrected severely. Will this time be different! Can liquidity flow sustain the RSI for a longer period of time! Interesting to see in the next 2 months.
NIFTY SMALL CAP RSI is 81 on Monthly chart. Prior to this, RSI has crossed 76 only 4 times on monthly chart and every time it corrected a lot. Everything is clearly mentioned on the chart.
Is it time to be cautious on small cap!
Nifty Midcap. Whenever it reaches at the upper end of the channel, it corrects approx.10% within a span of 35-44 days in the last 2 occasions. This time again it reversed after touching the upper end of the channel and so far it corrected approx. 5%. Will it repeat this time also? so far it seems, yes.
