Wednesday, February 1, 2017

Nifty moving precisely as per Neo wave pattern post Budget!

#Budget2017 event is finally behind us and markets have reacted positively after that. Nifty movement has been precisely as per Elliott wave pattern we have been considering.

We believe that events or news only results into temporary movement but market eventually resumes the original trend or pattern. These patterns are identifiable using Elliott wave theory. We take a step forward and combine different techniques of timing the market with the help of Hurst’s Time cycles and Gann Square of Nine. You can refer the article here – Gann Time analysis

Over past few days we have talked about the above methods and pointed out that wave b should retrace part of wave a which happened and then wave c should start on upside (currently ongoing). Time analysis helped us to identify reversal in form of wave b even before it started.

Now look at the below chart of Nifty shown in morning research report “The Financial Waves short term update”

Nifty 60 mins chart:

Following is the part of research published in the morning before the Budget session

Wave analysis:
Maximum 346 points of range was seen during the budget of 2009 which is highest since the year of 1999. The important point to note down is that in last 4 budgets which is including interim budget of 2014 we have seen more or less flat to negative or positive close not more than 1% on either of the sides. However on intraday basis 200 to 220 points movement on Nifty between highs and lows is possible. Based on the same we have shown the probable path of Nifty.

Nifty has so far shown a movement of 185 points between highs to lows which is in close estimate to what was expected…..

As shown in 60 mins chart, fall witnessed in last session along with close below 8606 level indicate that minor wave b of second standard correction pattern has started. Now nature of wave b will guide us further for the development of pattern. If wave b retraces more than 61.8% of the wave a then chances of Triangle under formation will be high whereas if retracement is less than 61.8% then we can expect wave c to come on upside of Zigzag correction pattern.

Nifty managed to protect the 61.8% mark and showed sharp recovery after the Budget. We gave buy on Nifty to our clients subscribed for Nifty and stock tips as soon as 8620 (spot) was taken out on upside which confirmed that wave c will travel past the recent highs as required by the rule of Zigzag pattern.
This pattern analysis helped us to capture nearly 100 points in just few hours that too on an event day like this.

The above research simply highlights the fact that market major trend is not determined by the event but it is post the market movement, news around it gains logical weightage.

Subscribe NOW to the Stock Tips and get free access to the daily research report “The Financial Waves short term update” that highlights Nifty detailed technical analysis along with charts and explanation on Elliott wave, Neo wave, Gann analysis, Time cycles.

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