Time to book profits in Smallcap and midcap stocks

Since Feb 2009, Midcap and Smallcap stocks has been appreciated by almost 240% and 300% respectively. But both the indices could not made a new high, both the indices recovered almost 80% of entire fall ( from Jan 2008 to Feb 2009).

If you are holding any smallcap or midcap stocks then please exit them if it goes below 10 days low.

If BSE Smallcap index closes below 8992 then it may test 6000-7000 levels once again.

If BSE midcap index closes below 7215 then it may test 5600-700 levels once again.

Its a 34 th Month from the all time high and 21st month from recent low (March 2009), so december month can be trend reversal. So be cautious in the market and keep tight stop loss orders.

Following sectors looking weak on charts:

Capital Goods, Power, PSU, Real Estate.

We may see profit booking in following sectors:

Banking, FMCG,Auto, Consumer Durables, Metals, Oil & Gas.

Following sectors may outperform the broader market:

Pharma ( Healthcare), IT.

18950 for Sensex and 5690 for Nifty are crucial levels. If it goes below mentioned level on closing basis then that confirms the down trend. Happy Trading!!!!!!