Many would have been looking at RBI stance to understand what will be the direction for Nifty and Sensex or rather overall Indian equity markets.
RBI did not disappoint and cut the key repo rate by 25 bps which was widely expected. Even though Nifty reacted sharply lower and is now down by more than 200 points and Sensex down by nearly 690 points – in a single day!
Many would blame the hawkish stand taken by RBI on growth and higher inflation outlook.However, food for thought is: Do events really impact the trend of freely traded markets? We have our doubts… A big Key reversal happened on the previous rate cut on 4th March 2015 when RBI cut the rate by 25 bps and so did today… Such sharp reversal is not random and has happened exactly from the channel resistance along with key Fibonacci ratio retracement zone.
We do not rely on news event to decide what market will do but look at the markets to see if on a positive news the index is closing lower which happened today.
The movement of today should NOT be a surprise for our readers. We highlighted in our article on 25th May 2015 - Nifty: Neo Wave analysis – Volatility with more than 150 points movement is here to stay!!!
Here is the gist of that article “The above chart is definitely not sending across very good signs and it is time to stay cautious! Break of important levels can result into serious capitulation which will be a surprise to majority. Volatility will increase, Movement of more than 150 points will become a norm and everyone will start finding out logical reason or rather news why prices are falling. All this will be post the fall but for now STAY ALERT and forecast the future rather than relying on postmortem news!”
See yourself what has happened today in below short term chart:
Nifty 60 mins chart:
The above chart clearly shows the impact on market post RBI rate cut. But irrespective of the event, Nifty has reversed on downside from the trendline resistance along with Fibonacci resistance area of 61.8%. The event simply gave another logical reason for justifying the move but we were expecting this well before the event as highlighted in our 25th May article mentioned above.
Such movements are not random and can be predicted using the advanced concepts of technical analysis. We have our past records that show the method that has stood the test of time. Now you can also gain the expertise of forecasting that can improve your trading decision with a scientific and systematic approach to markets.
Attend the most advanced Training on Neo Wave – Advanced Elliott wave combined with Time cycleswith the practical applications. Identifying the pattern is very important and by looking at practical chartswill make all the difference. Even after the training – get free access to Nifty Neo wave report for a month and post your queries on our Discussion Forums. Trust me this will be the best investment you would have ever made!
First of all big thank you for the excellent training session. This was one of the best training I've ever been in!!!You did terribly well! I was/and still am impressed about how you made something "simple" from this very complicated stuff called NEOWAVE -I tried to read the book, and gave up...Now I'll give it another try...
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The simplification of complex subject of "Elliot Waves" and combination of Elliot Waves with Classical Technical Tools are not only Awesome, but Unique too. I've thoroughly enjoyed Mr. Kyal's Seminar at Sarovar Premier Hotel, Bombay during 13th & 14th October, 2013 because of his Flawless, Plain (Jargon free) and Lucid Language. Best of all I liked his virtue to teach what he really performs in his real professional life.And last, but not least, Mr. Kyal's Seminar was the Best of All Seminars I've ever attended
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Mr. Ashish Kyal is simply the most amazing teacher of practical Elliott Wave Theory.
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Myself Sameer. Just want to share my feedback. From last 7 years, I am doing full-time trading in F&O segment (Nifty & Bank Nifty) using my technical study and Elliot wave counting. I attended 2 days Neo Wave seminar on 1st March at Goregaon. The session and teaching by Mr. Ashish Kyal was excellent. The topics covered in session e.g. new Neo wave patterns, new Elliott rules, 2 stage confirmation and Time Cycles were very useful. Today I applied these techniques on Nifty and Bank Nifty (Daily & 60 Min charts) and its working perfectly fine. I am very much satisfied with the course. Just want to say Thank You for sharing such valuable knowledge. I have also subscribed for your daily mail service on Nifty EOD and Elliott view. From last 3 months, I am reading these mails daily. I always verify my own analysis with your mails, before taking any entry in market. The accuracy and success ratio of your mails (analysis) is more than 98%, which is excellent. Thanks again.
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