ICICI Bank reversed exactly from important Channel support but credit goes to Essar news!

Essar Rosneft deal will help Essar pay back its debt to ICICI Bank that helped the stock to gain by nearly 7%. Is it really the news that drove stock higher which was already expected?

It is surprising to see such co-ordination between the news and the technical study. Exactly from the previously mentioned support of 240 levels on ICICI Bank which is also channel support prices bounced sharply and the credits are given to the Essar Rosneft deal.

Yesterday this stock was up by 7% and managed to hold Bank nifty on a positive note.

ICICI Bank daily chart:

Elliott Wave analysis:

The daily chart shows that in the start of 2016 prices are moving in primary wave X. The channeling technique has been working well on the above chart and yesterdays bounce is the best example to look upon. Now from medium term perspective trend will be positive as far as this support line is intact. On upside we should see up move towards the channel resistance in the form of minor wave c.

As shown in 60 mins chart, (shown in actual research report)……

Nifty has shown a sharp rise so far in current trading session and is about to cross above 8600 levels. We have been mentioning the key support levels in our research report and prices respected that level even now. In range bound markets it is crucial to buy near supports and sell near resistances rather than trading the breakouts. We combined various techniques like Bollinger Bands, Moving averages along with Elliott wave to understand the reversal areas.

The above research is picked up from the daily report – The Financial Waves short term update published daily before Equity markets open. The report contains detailed technical analysis along with Elliott wave chart of Nifty and different stocks. For subscription to this research report simply visit Pricing page and select Equity research report.

Attend the two days online webinar on “Combining Basic Technical analysis along with Elliott wave and Time cycles” to be held on 20^th October and 21^st October 2016. Now distance is not a problem and the recordings of the session will be made available in case you miss it due to technology issue. Along with it get access to Ashish Kyal, CMT directly by posting discussions or writing to him directly. Also get access to research report FREE for one complete week! For registration Contact US now!