Indian equity markets are indeed showing serious capitulation.
BSE Midcap and Smallcap indices are down by more than 2.5% and few of the stocks like Reliance Power, Reliance Capital, Reliance Communications, HDIL, DLF, etc are down by more than 10%, Unitech down by 50%, JP group stocks down by 30%. This is indeed a crash across the board and a panic selling. Many would be arguing such severe selloff cannot be predicted but we would beg to differ and have enough evidences that clearly pointed towards such possibility.
We do not rely on news to understand market direction or trend but use very important scientific and systematic method to understand the trend. Neo wave – Advanced Elliott wave along with Time cycles helped us to predict a crash at hand.
In our daily research report “The Financial Waves short term update” we have provided enough technical justification to warn our clients about this impending selloff and to ride it on downside. Buy on dips strategy will no longer work.
We also published an article below on 6th of May providing the reason why we expected a crash and it has happened today. Carnage across the board! Below is the chart that we shown on 6th May 2015 and reproducing it here…
Nifty: Is Indian Equity markets headed for a CRASH! – published on 6th May 2015.. Here is the linkhttp://www.wavesstrategy.com/FreeArticles/stocks/nifty-is-indian-equity-markets-headed-for-a-crash_1_766
Below is the chart published on 6th May 2015 and we showed it in our daily research report
Nifty daily chart:
Happened as of 3rd June 2015:
Published on 6th May 2015 “The above chart shows two important time cycles as per Hurst’s analysis – 54 days and 108 days cycle. The cycle reaches its maximum downside acceleration at the zone of 75% completion. 108 days cycle is now already at 73% completion so we are headed for the crash zone as per this cycle. Another cycle of 54 days is now heading towards 50% which is the topping area. So after next few days this cycle will also turn on downside.
As per Neo Wave – Advanced Elliott wave: we have completed a very important uptrend that started from the lows of 5118 in August 2013. This is for the first time that prices have also formed lower highs and lower lows which is classical confirmation as per DOW Theory as well. We will not be able to reveal our downside targets from here as it is meant for paid subscribers but the hint is we use Fibonacci levels from the truncated areas to get exact target zone!
It is now always that the technical picture gets aligned all together very accurately. Such alignment happened weeks back and probably this is the time again where everything is hinting towards the same thing – A probable CRASH! However, do not get carried away and use prudent stoploss levels in case market decides to play out otherwise. Our short term research report along with long term monthly forecasts gives a complete view on Indian equity markets and stocks with utmost objective techniques.”
The above research that was published on 6th May 2015 provides enough proof that Equity markets do not move randomly but in predictable fashion that can be forecasted with help of Time cycles and Advanced Elliott wave concepts – Neo wave.
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