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.
Investor faith in small caps has been shaken as the SmallCap Indices are in absolute panic last Friday. Index closes 6.06% down on last Friday and down by 10.63% on the Union Budget 2018 week. The fear in Smallcap starts during the mid of Jan 2018 and the warnings by one of India’s richest bankers, Uday Kotak, of building of a stock market bubble.