Nifty Smallcap index formed a classical bullish island reversal pattern during last week of March 2018 since then price mean reverted back to 200 Moving Average on the daily charts. Last 15 trading sessions its been hovering around 200MA.
Smallcap Meltdown started much before the correction in the broader market segments. Started under-performing Nifty and Nifty 500 since mid of Jan 2018.
An island reversal is short-term reversal pattern that forms with two overlapping gaps. Refer Nifty FMCG Bearish Island Reversal charts for similar examples from the past. Gap Zone on the daily chart comes around 7747 levels. Medium term outlook is bearish and possibilities of testing 2018 year swing low.
RRG Charts suggests a negative momentum building up in the very short term and currently revolving in weakening quadrant with increased momentum on downside. Too much of crowded trade around 8200-8400 band. Breaking this band could bring lot more momentum on the downside.