Friday, June 21, 2013

Nifty: 140 points movement revisited and applying Bollinger Bands®

By Waves Strategy Advisors, For more information visit
Nifty had a fall of more than 150 points in single trading session.
On 31st May 2013 we published on website the following article: “Nifty 140 points movement is here to stay!” Click on the link to refer to it again.
In the end we mentioned that “The predictably is going to increase as we expect a strong trending move to start in Indian equities. The sharp reversals over past few weeks looks to be ending and this time it will be a trending move in one direction and do not be surprised to see Nifty moving by 100 points as it is here to stay!”

Nifty had a down move of more than 150 points in single day. Increase in volatility and moves of more than 100 points provide important clues that the market dynamics have changed and such volatility is precursor to the bigger down trend! However it is imperative to observe short term important levels from trading perspective. Below excerpt from the daily research report“The Financial Waves” shows important levels using Bollinger Bands.
Nifty 60 mins chart: As of closing on 19th June.
Wave Analysis:
As we have mentioned before, corrective moves are always challenging from trading perspective and markets are now digesting the sharp reversal seen on upside in last week. During such sideways market it is better to apply Bollinger Bands that provides important turning points.
As shown on 60 mins chart, prices touched upper end of the band near 5860 level and moved lower. The lower end of the band is now placed near 5770.
As per wave perspective, prices have ended wave y near 5680 levels and currently moving higher in the form of wave x of complex corrective pattern (w-x-y-x-z).  Once this will correction complete on upside then it will resume the downtrend. Hence, we are monitoring Indian equity market closely and using different technical tools to catch the important levels.
Bollinger Bands provided 2 important levels. Nifty opened at 5755 today – below the lower end of Bollinger Bands and the selloff continued throughout the day. This is one important study that we apply intermittently to derive crucial levels.
In short …..
The above chart shows how we have combined channels, Bollinger Bands, Elliott wave counts, Fibonacci levels, indicators. The actual report not only shows 60 mins chart but also shows daily chart of Nifty. Prices have closed today at very crucial level as per the daily chart and it is very important for any trader or investor to be aware of such crucial level which can result into strong moves if breached!
The cost for this daily equity research report is Rs2000 per month and the same can be subscribed directly from the Subscription section of the website You get access not only to Nifty but also to charts and objective reasoning for 3 different stocks. For more information write to us at or call us on +91 22 28831358 / +91 9920422202

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