Will Nifty follow seasonality trend ahead of Diwali? Anand James does the chart reading

economictimes.indiatimes.com:

A Bollinger band is indicating that Nifty may rally in the Diwali week but two Doji candles formed in the last days do not inspire confidence towards an outright uptrend early next week, says Anand James, Chief Market Strategist at Geojit Financial Services.

Edited excerpts from a chat:

In the last 9 out of 10 instances, Nifty has given positive returns in the period between Navratri and Muhurat trading. Do you see history repeating this time as well? What would be your targets for the week?
Prospects of the same are supported by a narrowing Bollinger band and the fact that we are coming off a low base after a steep and sustained downtrend from a record peak. FIIs’ shorts in index futures being at an extreme position also support the prospects of a push higher. But even as we continue to look for 19,420 as the immediate target, the two dojis in the last two days do not inspire confidence towards an outright uptrend early next week. The inability to float above 19,230 initially, could point towards this but dips towards 19,180 or slightly below could augur well towards resuming upsides.

Mid and smallcap bounced back and outperformed. Do you think that the recent correction has made the rally stronger in the broader market?

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While Nifty has just about managed to get back near the nearest reaction high, it is still below the 14-day SMA. In contrast, both mid and small caps have raced higher with the former now exactly at the 62% retracement from the peak, while the latter