BSE Capital Good

The BSE Capital Good index has been trading above the 20DMA despite the recent correction in the market. The index is witnessing subdivisions in Wave 5. Within Wave 5, the BSE Capital Good index is in Wave III which is further getting subdivided. So it looks like there is a long way to go for this index. In the short to medium term, the conservative approach suggests the BSE Capital Good index can possibly rise higher to 26100 where Wave III will be equal to Wave I. The 20 DMA and 40DEMA which are currently pegged at 23063 and 22770 respectively will provide support on the way down.