Will Nifty Midcap and Smallcap indices rebound or face extra ache? Right here’s what technical charts sign

After delivering sturdy returns over the previous two years, mid-cap and small-cap shares have confronted sharp corrections in 2025, weighed down by world uncertainties and macroeconomic headwinds. A mixture of relentless international institutional outflows, weak company earnings, and a weakening rupee has intensified the promoting strain.

Including to investor considerations, U.S. President Donald Trump’s latest announcement of contemporary tariffs has raised fears of a possible commerce battle, which might sluggish world financial development and enhance inflationary pressures. Consequently, Indian equities, significantly the mid-cap and small-cap segments, have seen a steep decline this yr.

Mid-cap and Small-cap Efficiency in 2025

The Nifty Midcap 100 index has considerably underperformed in 2025, dropping over 12 per cent in comparison with only a 3 per cent decline within the benchmark Nifty 50 index in the identical interval. The Nifty Smallcap 100 index skilled a fair sharper decline, plunging over 16 per cent this yr.

The sell-off has been significantly intense in February, with the Nifty Midcap 100 slipping one other 5 per cent after dropping 6 per cent in January. In the meantime, the Nifty Smallcap 100 index has tumbled over 7 per cent in February, extending its 10 per cent fall from January.

In distinction, the Nifty 50 index has been comparatively resilient, falling 2.5 per cent in February after a 0.6 per cent decline in January.

Market Outlook and Key Ranges to Watch

In response to Anand James, Chief Market Strategist at Geojit Monetary Providers, the market is at a important juncture, with key resistance and help ranges enjoying a vital position.

“As feared, the upswings turned decrease from the 23,060 vicinities, the extent assumed to supply the primary line of resistance. This renders the 22,800 area ever extra susceptible, however yesterday’s shut doesn’t point out an outright collapse. We favor an ascent earlier than a draw back break unfolds, for the sake of momentum. Whereas we retain 23150 because the upside goal, we stay cautious about an imminent drop aiming at 21800-21300, until 23300 is conquered,” he said.

Technical Outlook: Midcap 100 and Smallcap 100 Indices

Nifty Midcap 100 – Key Assist and Resistance Ranges

In response to Om Mehra, Technical Analyst at SAMCO Securities, the Nifty Midcap 100 index has declined almost 20 per cent from its all-time excessive of 60,925.95, reflecting a wholesome correction. The index hit a low of 48,503.45 on Monday, and whereas the first pattern stays weak, a minor constructive divergence on the day by day chart might point out a short-term aid rally.

Key help: 47,246.60 (final examined on June 4, 2024).

Key resistance: A sustained shut above 51,600 might sign a possible rebound.

Bearish set off: If the index breaches 48,500, it might point out additional draw back dangers.

Nifty Smallcap 100 – Correction and Pattern Reversal Potentialities

The Nifty Smallcap 100 index, which touched 19,716.20 on December 12, 2024, has corrected 23.69 per cent in lower than two months, reaching a low of 15,044.40 on Monday. The index continues to type decrease lows and decrease highs on each day by day and weekly charts, confirming a downtrend.

Optimistic divergence: The day by day RSI and oversold indicators trace at a possible aid rally.

Key resistance: An in depth above 17,000 is required for a pattern reversal.

Speedy help: 14,800, with stronger help at 14,000, which will probably be important for additional path.

Cautious strategy suggested: Regardless of potential short-term positive aspects, the broader pattern stays weak.

In the meantime, Trivesh D, COO at Tradejini, highlighted the affect of valuation considerations and liquidity constraints.

“The sharper declines in midcaps and smallcaps counsel indicators of overvaluation, particularly amid latest market volatility. Regardless of stable home funding flows, international institutional outflows are placing liquidity underneath strain,” he famous.

Disclaimer: The views and proposals made above are these of particular person analysts or broking firms, and never of Mint. We advise buyers to examine with licensed consultants earlier than taking any funding choices.