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Indian markets experienced a sharp rally last week.
Afzal Lokhandwala, a market commentator and trader, said the Nifty Smallcap 100 continues in a downtrend, characterized by lower highs and lower lows, with its price staying below averages. Lokhandwala added that the recent rally has not changed this pattern.
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Lokhandwala recently flagged a 16% jump in Ola Electric shares on rights issue news but noted that the weekly chart showed no confirmed trend reversal (Ola Electric rose 16% on rights issue but trend remains downward, Afzal Lokhandwala notes). He also commented when EMIL shares dropped below the stop at 187 during weak trading conditions (Afzal Lokhandwala: EMIL dropped below stop at 187 amid weak market). Both instances highlight his continued focus on technical patterns over single-week rallies.