Thursday, May 1, 2014

NSE Midcap index: Elliott wave on broader market!

The below research is picked up from "The Financial Waves short term update" by Waves Strategy Advisors. It is a daily research report with views and charts on Nifty and 3 different stocks or sectors. For subscription option please visit

NSE Midcap Index Daily chart:          

             NSE Midcap Index 60 mins chart:

Waves Analysis:

For NSE Midcap, after the magnificent up move from 7500 to 9000 levels, since last 5 trading sessions index has been struggling near channel resistance. Now, break above or below the important price points will provide us the clue for next short to medium term trend ahead. Currently there is no confirmation that current up move is complete but looking at the slower momentum there is a high probability that up move is in matured stage.

Important reversal points: Any sustainable move above 9050 level will suggest continuation of an up move. However, any move below 8700 will indicate that prices completed up move and started downside correction.

On a weekly basis, in the up move from 7500 to 9000 levels, not a single time, prices gave close below prior bars low. As per this technique, any close below prior bars low will indicate negative sign and start of downside correction over medium term.

As shown in 60 mins chart, intermediate wave B/2 completed and since then prices are moving higher in form of intermediate wave C/3. Within wave C/3, minor wave iv completed at 8550 and minor wave v is ongoing which is probably making wedge pattern. On upside 9000 will continue to act as a resistance where channel is placed.

In short, looking at other indices and stocks, it seems that everything has arrived at the crucial level and soon trending move should start. On downside any break below 8700 will take prices toward 8500 initially and later at much lower levels.

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