Thursday, October 10, 2013

Nifty: Applying Volumes, Channels, Elliott wave counts, Time concepts, Moving Average!

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In the below article we have shown how we apply  Volumes, Channels, Elliott wave counts, Time concepts, Moving Average on Nifty
Bottom Line: Nifty managed to cross above previous high of 5980 and finally captured 6000 psychological level on upside!
Nifty daily chart:
Nifty 60 mins chart:
Wave Analysis:
Applying Volumes: On 7th October morning research we mentioned:“Revisiting volumes – Over past 2 days we can see how volume has increased with the uptrend and approached near the average line whereas during correction the volume continued to be subdued. I am not too strong follower of volumes but at times when there is a perfect rhythmic movement in this parameter along with price it is not worth ignoring. The day we will see volume reducing with up move it will be first sign of weakness but as long as volumes are increasing with uptick in prices the trend will be positive…As shown on 60 mins chart, the last segment of minor wave (a) is retraced in faster time thereby confirming that short term trend is now positive. A move below 5800 in faster time will be first sign of weakness. As long as this does not happen we can expect a move atleast towards 6040 …..” Nifty made a high of 6031.80 in today’s trading session itself!
On 9th October morning report we mentioned: As shown on 60 mins chart, prices are moving in an upward sloping blue channel. The support for this channel is now near 5880. So for even on short term we can see that each of the down leg is getting retraced faster” Nifty made a low near 5878 and bounced back by almost 130 points from there.
Applying Elliott wave: In today’s morning research we published: From Elliott wave perspective there are a few probable wave counts plausible out of which we have shown one of the counts. The up move has been contained within the blue channel and as long as this channel remains intact our bias will be positive. A strong improvement in momentum and increase in bar size on upside will indicate a ……… wave formation else ….. move back below ……… will indicate the bearish possibility or this is simply wave (b) of b that we have been showing before.
Applying Time concept: From Time perspective, each of the downleg is getting retraced in faster time. Even the down move of Tuesday got retraced completely in lesser time thereby maintaining the Time principle very well. This has been valid since the rally started from 5400 levels.
Time Cycles: Also if you remember we have a topping cycle of 69 days coming in by …….. So if a ……… move has to happen on it has to be in ……….. itself.
Indian markets have now reached the first milestone near 6040 which we have been mentioning over past 1 week. However, things are now at very crucial zone with Infosys results lined up tomorrow. We have already mentioned in our daily research report “The Financial Waves” about our expectations on Infosys movement with important levels.
In the 2 days training session on 12th and 13th October on “Elliott wave with Advanced Price and Time concepts” we will not only discuss about Elliott wave theory but also the current scenario ofIndian marketswhy we think Gold secular bull market has ended and US markets biggest ever negative divergence! For more information on training contact us or call us on +91 9920422202.
To know the short to medium term trend for Nifty along with detailed explanation of all the above mentioned indicators and why this is extremely important zone subscribe to this research for just INR 2000 per month. For subscription options visit

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