Friday, December 21, 2012

Nse Midcap Index: Elliott wave counts

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Even on NSE Midcap Index Elliott wave counts worked very accurately. This index provides information for the movement of Midcap stocks in the Indian Equity market. Similar to Nifty, prices were moving higher in the upward moving blue channel and we have been perfect in capturing this rise from 7650 levels which can be seen below in the daily chart.
The below excerpt is being picked from our daily published Equity report " The Financial Waves STU" of 21st December,2012.
NSE Midcap Index Daily chart:
Anticipated on 29th November 2012:
Waves Analysis:
We have mentioned in the previous update of 29th November 2012, “7650 will act as a strong support. As long as prices sustain above this level our bias is positive and prices could test the resistance of 8100 level over short term. Further sustainable move above 8100 will start the trending move on upside”. BANG ON!!!
NSE Midcap index moved perfectly as expected. At the end of November 2012 prices have taken support near 7650 levels, thereafter constantly for 12 trading session prices closed above the previous day low and made a high of 8495 in the last week.
As per wave perspective, prices have completed minor wave iv near 7650 levels and currently it is moving higher in the form of minor wave v of intermediate wave C. Indeed, prices are moving in the final leg of wave C and exhibit the negative divergence. But we will not try to catch the top and wait for negative confirmation which will be obtained below 8280 levels over short term.
Same as Nifty, Nse Midcap index is consolidating between the range of 8280-8495 levels from last few trading sessions. In the previous trading session prices have arrived near the previous high of 8495 and upper end of the channel. Looking at broader market it seems that prices can continue the sideways action for few more trading days and then it will resume the uptrend.
In short, 8280 will act as a support and 8495 as an immediate resistance level. Sustainable move above 8495 will not only break the channel on upside but also resolve the uptrend. However, move below the support of 8280 could take prices lower till the next support of 8100 levels.

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