Indian Midcaps: Track this index to know trends!

A Chartical Observation

The chart below shows the indexed (Both indices marked to 100=January 2015) movement of the NSE Midcap 100 Index (Red Line) alongwith another index (Blue Line).

The peaks and troughs in both are fairly similar and so are the drops and rises – exhibiting a sharp correlation between both as is evident. Even the 200 DMA (Days Moving Average) line has similar curvature.

Knowing which index to track may then give additional information to traders  in the future as to critical junctures or turns.

Can you guess the Index in Blue?

Answer: The Index in Blue is the MSCI Emerging Market Index! The MSCI Emerging Markets Index captures large and mid cap representation across 24 Emerging Markets (EM) countries*. With 1,150 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.


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