Friday, November 1, 2013

Long term analysis on Sensex, Global Markets, Bank Nifty, CRB index, EURUSD & USDINR comparison all in monthly report

Following is the summary of “The Financial waves Monthly update” which covers long term Elliott wave counts, projections and targets on Indian Equity market by Waves Strategy Advisors. For more information visit
Along with this it covers comprehensive research on BRIC (Brazil, Russia, India and China) indices and Hong kong and DJIA.
Sensex has again approached near the life time high levels of 21200. In this research we have shown why the zone of …and …. is extremely crucial. The reason why we think there is still one leg pending on downside is based on Time cycles and also the current up move on Nifty and Sensex is on back of series of negative divergences. When a market has to break above the strong resistance zone which is probably a multi-year level it has to do so with lot of strength and momentum. On the contrary we are seeing slow down in price acceleration, no meaningful improvement in Advance decline line which is still near the lows. 
Interest rate cycleplays vital role in understanding where we stand in the overall Economic cycle perspective. We have used Interest rate analysis to derive the larger term outlook for Equity market.
Banking sector has shown good pullback from lower levels over past few weeks but even Bank Nifty has arrived near very strong resistance. The Moving average cross over concept which has been working very well on larger time frame can be used to get signals from investment perspective as well. It seems Banking index….
This time our stock pick is State Bank of India which is the PSU major from the Banking space. SBIhas few more months of correction pending post which it should start multi-year bull trend along with major market and should head towards…. levels by …... The Banking and IT relative chart analysis suggests that the IT index has started outperformance against Bank Nifty and should continue to do so for many more months to come.
CRB index is comprised of 19 diversified commodities including Energy, Precious metals, Industrial metals, essential Agro products. It therefore becomes essential for us to understand the trend of this index from the Global inflation perspective. To our surprise it seems that inflation is only localized as of now and is seen in developing economies like India as this index is way below the highs made in 2008. The prices of commodities seem to have increased in local currency terms but not in dollar value. This is what is leading the world developed nations to keep their interest rates at lowest possible levels on contrary to that seen in developing economies. The world seems to be divided between Inflationary and deflationary pressures!
BRIC equity indices along with DJIA and Hang Seng at a glance – We have shown 6 different charts on a single page with Elliott wave counts to understand what is happening among BRIC countries. You will clearly observe that it is not only India that has arrived at the crucial juncture but it seems entire world markets are now near crucial resistance levels. If India moves in isolation then why most of the world equity markets are also at crucial juncture that too at same time!!!
Above is the brief on various topics which has detailed explanation in “The Financial waves Monthly update”. To subscribe this report visit to us at or call us on +91 9920422202 / +91 2228831358

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