Thursday, April 27, 2017

Bank Nifty is at Life time highs: 3 most important techniques to ride the trend!

Understanding the trend of Bank Nifty with application of Elliott wave, Channels and Moving averages!

Nifty has shown spectacular rally in last 3 trading session and prices have moved higher from 9075 to 9366 levels. Based on the basic as well as advanced concepts of Technical analysis we were able to capture the up move and you can see detailed research here. In last 3 months Bank Nifty has moved higher from 17600 to 22250 level till now. Although the rally has been corrective in nature as per Elliott wave theory but it has managed to follow 3 most important techniques which helps to ride the trend as long as it goes. Below chart on Bank Nifty is taken from The Financial Waves Short Term Update  which was published in todays research before the market open.

3 Techniques to follow the trend of Bank Nifty:

20 Days Exponential moving average: Moving average is the simplest concept however one needs to check from Trial and error method that which MA is suiting well to prices. 20 days EMA is providing excellent support and recently prices reversed on upside from the same. Positional traders can use this EMA as risk management.

Channeling technique: Before initiating any positions, it is better to see on charts that which channel is working. Small blue upward moving channel as shown below in daily chart has played its role brilliantly and up move resumed when prices tested the channel support.

Bar technique: In the entire up move we have observed that as long as prices continues to protect the low of prior bars on closing basis, trend continued on upside. Whenever prices gave close below prior bars low, consolidation was witnessed.

Bank Nifty daily chart:
Bank Nifty,Elliott wave

(Part of research taken from today’s research)

Wave analysis:

Bank Nifty has continued to provide major support to the Nifty and this sub index is trading at the life time high. Let us look at the short to medium term structure of this index to understand the trend ahead.

The daily chart of Bank Nifty shows that prices have been respecting the short term upward moving channel. Recently prices made a low exactly at the channel support and then sharply moved higher towards the channel resistance. As per wave perspective, prices are in minor wave . of third standard correction pattern and from here on it will be crucial to see if it breaks the channel resistance or starts to move in consolidation. Till that time it is better to follow the bar technique. As per this technique as long as prior bars low is intact on downside trend will be positive. 20 days EMA is proxy for the same which is constantly providing support to the up move. Medium term support as per this MA is near 21380. Medium term investors in banking sector can use this EMA as risk management strategy.

(60 mins chart with Elliott wave is not shown here which is covered in research report)

In the last session high volatility was witnessed which was in lines with that observed on Nifty as well during the day but prices later managed to close near the high point of the day which will keep positive trend intact. As shown on hourly chart, prices are now near the upper end of the channel resistance. It is not very often to see break above the upward sloping trendline but given the steepness it is prudent to avoid catching a top and trading in direction of the trend. Any break of level will decisively break the channel resistance and suggests continuation of up move.

In short, Bank Nifty has immediate support at psychological ……. mark followed by ……… level. Move above . is required to extend this rally further as it is also the equality level for wave c with that of wave a.

These are some of the techniques which we follow to capture and ride the trend. However one should also understand that continuous research is the key to be successful in a market. It is crucial to understand the market dynamics so that one can keep himself ready with different techniques.

Subscribe to “The Financial Waves Short Term Update” which covers Nifty, Bank Nifty and 3 different stocks on daily basis using one of the most advanced and scientific approach to technical analysis using Elliott wave, Neo wave, Time cycles and much more. Nifty and Bank Nifty has behaved exactly as the way expected and it is not very often to see such high degree of accuracy. Get your copy NOW 

Wednesday, April 26, 2017

Contest Alert: Guess Nifty expiry!

#ContestAlert: At which levels will Nifty close on the day of Expiry (27th April -2017). Guess the closing levels of Nifty and the nearest guess wins Discounted Coupons.

Only one entry per user. No entries will be counted after 26th April -17; 11:59 PM

*T&C Apply

Tuesday, April 25, 2017

Nifty: Power of Gann square of Nine, Hurst’s Time cycles Anticipated & Happened!

Below research highlights - Understanding the trend of Nifty with application of Gann theory, Hurst time cycle combined with Neo wave.

Nifty has continued to be in Bulls radar and tested the new life time high of 9287.75 (@1.06pm) in today’s trading session. If we ignore the last 2 days of up move then in the entire month of April 2017 we have witnessed overlapping kind of down move from 9275 to 9075 level. However interesting thing is that entire movement of April 2017 which has happened till now is exactly as per the path shown in the research report. We predicted accurately the path of Nifty based on Advanced Technical concepts such Neo wave, Gann square of Nine price projection and Hurst Time cycles. Below we have shown proof of the same which is taken from “The Financial Waves Monthly Update” published on 4th April 2017.

Nifty daily chart: Gann square of Nine Price projection with Hurst’s Time cycles (Anticipated on 4th April 2017)
Nifty,Elliott wave
Nifty daily chart:  (Happened till now)
Nifty,Elliott wave

(Part of research taken from “The Financial Waves Monthly Update” published on 4th April 2017)

“Gann Square of Nine Price projections combined with Hurst’s Time : During complex patterns when the trend is strong we try to use different methods to get price and time projections. On Figure 5 we have applied Gann square of Nine price projections. This is applied by looking at 180 degrees on Square of Nine.

The below figure shows square of Nine method. Yellow highlighted area on the right side is the 0 degree and on the left side is 180 degrees. Since the price levels on Nifty we are looking at is nearly in range of 9000 the same cannot be shown here. But we have made excel projections with the entire cells till more than 10000 marked in the below fashion. Due to restriction of space the same cannot be shown here. So the price levels marked on Figure 5 is derived from the yellow region on the left side of x axis which is in series of 2, 11, 28, 53 etc. So if the reading continues you will come across 8327, 8696, 9073,… marked on above chart.

As per this logic since the level of 9073 is now broken decisively and prices managed to form higher highs and higher lows above this level the next level to look out for is at ….

Square of Nine:

Hurst’s Time cycles: We have taken a step forward to combine the above Gann method and apply it along with time cycles to see if we can time the turn. The path is shown on the chart based on channels and Time cycles. As per this we should see some pullback on downside towards the level of 9080 after one more push towards the channel resistance. This path is only tentative as Time cycles can lose its validity during strong trending moves.

Displaced cycle 55 days: Due to Demonetization and Trump victory on 9th November 2016, the cycles got little distorted. It is unclear as of now if the original cycle (red) is working or the displaced one (blue) is more important which is from the important lows. We are therefore going to use cycle analysis only with little caution unless further clarity is obtained.

Neo wave existing wave counts: As mentioned earlier looking at the sharp rise even above the high of 9219 there is a possibility that wave [E] is over in form of a running triangle pattern and next big up move has started. Nevertheless the rallies are going to be corrected by declines and sometimes sharp which will provide excellent opportunities to enter.

So for now prices are moving in form of wave …. of the up move as shown in Figure 4. Now as the rise has been in overlapping fashion without sufficient time correction it means that it is not a normal impulse but ……..

In a nutshell, looking at the overall trend so far the best strategy to follow is the weekly bar method. … Also as per Gann analysis method the next level to look forward to is ….which is lying on the 180 degree angle….Nifty can move as per the path shown ….”

Happened: Nifty is moving precisely as per the path shown on the chart on 4th April 2017. Post publishing of this research prices corrected from 9275 to 9075 level and protected 9073 level which was mentioned as per Gann square of Nine price projections. Along with this Time Cycle of 55 days also played a crucial role and prices made low near the same. Isn’t it a thrilling experience to see certain levels both in terms of Price and Time working so precisely?

SUBCRIBE NOW to “The Financial Waves Monthly Report” which covers different asset classes like Global Equity Markets, Commodities, Currency, Mutual Funds, etc. and published in the first week of the every month.  For daily updates on Nifty and 3 different stocks with Elliott wave theory subscribe to “The Financial Waves Short Term Update”  and trade with the help of Technical analysis! Subscribe daily equity research report annually - get 30% discount along with access to this Monthly research report Free for limited period. The predictability is very high and you can see it in above charts. Get your copy now

Thursday, April 20, 2017

How to trade Nifty using Indicators and Channels?

Subscribe NOW to the daily equity research report and get the Monthly research absolutely free over the period of 12 months. At times it is important to know the Elliott wave counts right from hourly charts to the monthly charts which give holistic perspective from trading to investments decisions! Get your copy NOW

How to trade Intraday - HDFC Ltd in Futures and Options?

Below research highlights on how did we generate intraday call for HDFC Ltd based on Elliott Wave, Channels, Moving average and Fibonacci retracement!

Nifty has continued to move in overlapping fashion from last few days however during the same time stock specific action has continued with strong momentum. This has been providing good opportunity for intraday traders. Below is the stock tip given on HDFC Ltd to our Intraday  / Positional calls subscribers. 

Below we have shown 60 mins chart of HDFC and the strategy we followed to give Intraday call in Futures as well as in Options to our subscribers:

HDFC FUT BUY AT CMP 1500 SL 1480 TGT 1530 – Time 9.26 AM when call was given

HDFC 1500 CE APR BUY AT CMP 14.60 SL 7 TGT 28  - Time 9.26 AM when call was given

HDFC 60 mins chart: (Anticipated)
HDFC, Elliott wave

HDFC 60 mins chart: (Happened)
HDFC,Elliott wave

Happened: In the above chart we can see that Elliott wave is helping to understand the overall trend along with Channels and Exponential Moving average of 100 periods playing important role. Based on this technical concept, we provided call to our subscribers and HDFC moved in lines with our expectation. Prices showed strong momentum on upside in form of minute wave iii and achieved our target level in first few hours of trading session.

This indicates that trading can be systematic if one applies and follow the objective methods of technical analysis. However one should also understand that stock market is a game of probabilities and hence one should follow strict risk management strategies. We advise our clients to trade in 2 lots in which we book partial profits in 1 lot and trail the other one to cost to fetch the maximum out of ongoing trend.

SUBSCRIBE NOW to Stock Tips on annual basis and get 30% discount. Also get access to the Equity daily research reports and Monthly research reports for Free that explains Elliott wave concepts in detail and various trading opportunities. Calls are given via Yahoo messenger / SMS/ What’s App with complete follow-up.