Smallcaps in India have been showing a lot of momentum since the March 2020 lows. We had highlighted this in our blog once the move had started in July 2020.
Let us see the updated version of the smallcap vs largecap point and figure chart.
See the trending moves that happened when we got buys above the moving averages. The first arrow was in 2013. The second arrow in 2015, the third in 2016 and the final one in July 2020.
Smallcaps showing strength is a good sign for the economy. It shows the rally is broad based and has a lot more to run.
Ignore the corrections that happen along the way. This is a good space to be in for the next few years. Stay Long!