Monday, October 3, 2016

Nifty reversed exactly as expected when majority turned BEARISH! Here is the proof…

Channeling technique, Elliott wave theory and sentiment indicators all helped us to be against the crowd this time as well post the Indo – Pak surgical strike event on 29th September 2016.

In Thursday’s trading session which was 29th September 2016, mayhem was witnessed in Indian Equity markets. The sharp fall was witnessed post the announcement by Indian Army - Surgical Strike in POK. Within a few minutes after the announcement Nifty moved sharply lower from near 8800 to 8559 level. Such kind of fall was enough for majority to turn bearish however; we took a contrarian bullish stand at that time. Following were the updates published to our subscribers of “The Financial waves short term update” along with Video release justifying our objective stand for up move. 

Interim Update published on 29th September 2016 at 1:30 pm, Nifty was trading at 8650

Bottom Line: Nifty showed sharp move on downside on back of an event. Such declines on event or news create important levels. It is interesting to see Nifty has bounced back exactly from the important channel support near 8560 and so does many of the stocks. I do not think it is panic scenario and we cannot rule out upside pullback. One should keep an eye on 8540 as very important support and 8710 as short term resistance. Decisive break above 8710 will indicate positivity. I would take a contrary stand against majority who are extremely bearish now given that the fall is on back of event and one leg on upside looks pending as per Elliott wave.

Detailed analysis along with charts will be published in tomorrow's morning Equity research report - The Financial Waves short term update. Stay tuned!

There is more to it, we also published the below video explaining why Nifty is at important juncture from technical perspective.

Video update published in the evening of 29th September 2016: How to trade Nifty post Surgical Strike?- click here

Nifty 60 mins chart: (Anticipated in the morning of 30th September 2016)

Nifty 60 mins chart:  (Happened till now)

“As shown on 60 mins chart of Nifty, we can see that there are 3 important channels meeting at the lows of yesterday. The most important channel is the bigger blue one that connects the low of Brexit day i.e. 24th June. Another red channel connects the lows from the zone where there was lot of trading activity previously and the short term black channel connects the recent highs and lows. It is not very often to see confluence of so many trendlines at one place and if market closes near this trendline we cannot rule out the possibility of a bounce back. Such strong support zone can either be broken by a Gap or by a strong selling pressure creating big red bar. So if today Nifty decisively breaks below 8540 level and sustains there throughout the day then we can be headed for deeper correction. But in case prices manage to protect the lows for a day or two then we can resume back towards the level where Nifty was trading before the news broke out.(Part of research taken from the report dated 30th September 2016)

Looking at the Elliott wave pattern the entire structure looks like a Flat correction marked in alternate labels with wave b currently ongoing and post its completion we can see wave c on upside towards ….

In short, Indian markets have closed near important juncture and follow-up movement today and on Monday will set the tone for weeks ahead. A blue bar formation from here on will result into one final push on upside ……..

Happened: Amid the high volatility we mentioned our outlook on Nifty based on objective technical tools and as of now prices have been behaving exactly as expected. Get access to the daily research report to see what is next from here. We have turned bearish near 9000 level and bullish at the lows of 8560. It is not very often to see patterns working exactly the way they are supposed to but it is indeed thrilling to see this happening in real time in current scenario….

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Intraday / Positional Advisory

We also provide trading advisory intraday as well as from positional perspective: Below are a few of the trading calls which were given in last week of September 2016 and targets were achieved just before the market crashed…

AJANTA PHARMA FUT BUY AT CMP 2014 SL 1960 TGT 2095 - Target achieved on 29th September 2016

BEL FUT BUY AT CMP 1260.60 SL 1237 TGT 1297 – Target achieved on 29th September 2016

ZEEL OCT FUT BUY AT CMP 543 SL 528 TGT 566 – Partial profits booked and trailed on 29th September 2016

MnM FINANCIAL OCT FUT BUY AT CMP 363 SL 354 TGT 379 - Partial profits booked and trailed on 29th September 2016  

CASH HINDUSTAN ZINC BUY AT CMP 244.90 SL 229 TGT 268 (given today) – Partial profits booked and the stock touched intraday high of  262.50 already today

There are times when due to challenging market conditions trading calls can be tricky but if the overall pattern is clear with prudent risk reward ratio than we do not mind to take a stand against the majority. Subscribe NOW to the trading calls and get research report free – Click here to register and select Intraday / Positional advisory. 

Live Webinar – Online training on Combining basic technicals with Elliott wave and Time cycles

In this challenging market you really need to know when to enter and exit the trend. Even if you are right calling for the overall market direction but do not time it well one might end up losing on the strategy. These techniques have helped us for winning the important stock market shows both on ET Now with substantial margins and CNBC TV18. So there is a strong proof of what we believe works in markets. It is during such volatile environment that there can be plenty of trading opportunities provided you have right objective tools. Now distance is not a problem. Learn from anywhere you want. 

Live webinar - Training on How Basic technical’s can be combined with Elliott Wave, Time Cycles by Ashish Kyal, CMT - Click here for more information 

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