Thursday, July 19, 2018

Trading Gold: Using the concept of Channels, Horizontal lines and RSI!

Precious metals – Gold and Silver had been in an impulsive downtrend. During such times it is best to adopt a few basic but important methods to time the entry for short term trading.
Look at the below chart of MCX Gold where we have applied the concept of Channels, RSI and Horizontal line. A confluence of these simple methods can help one to derive good trade setup.
MCX Gold hourly chart:

The above shows a simple method where we can see amazing application of channels along with horizontal line concept and Relative strength index (RSI) indicator.
An ideal trade setup would be for the short positions as the overall trend over past few days is negative. It is wisely said to trade in the direction of the trend as the line of least resistance is on downside.
Now when prices break below the support horizontal line and reverses from the channel resistance as well that is the ideal trade setup. We can see reversal in RSI as well during such time. We also keep a track on price movement on COMEX Gold to have high conviction.
Price has again arrived near the channel resistance and is on the verge of reversal from there. It is about to break below the short term red channel support and RSI is also on the verge of reversal. So is it time to go short on GOLD?
Get access to Intraday / Positional advisory on commodity where we shoot the calls via sms or yahoo with complete follow-up. Always remember trading is never a certainty and will involve risk. So maintaining strict stoploss is must and if you are not able to do that one trade can eat up all your profits. Also when someone talks about 99% accuracy think again! You think it is really that easy when we are forecasting the future. I agree there are times when your accuracy is around 95% for certain period but that too will not last long. It is best to be conservative and maintaining it near the zone of 70% – 85% is what can result into overall profitable trades.
Subscribe now to Intraday calls of Commodity and get the research report free along with it. Know more here
P.S. 2 days to go for seminar on How to derive trades using simple methods to advanced technical analysis… Know more

Thursday, July 12, 2018

Nifty beyond 11000! What is next?

Nifty has managed to cross beyond psychological 11000 mark yet again! This has been exactly the way it was expected.
See yourself the below gist picked up from the monthly research report – “The Financial Waves Monthly update” published way back on 7th June 2018.
Neo wave pattern: If you look carefully Nifty has not done anything in 2018. The year started near 10550 levels and prices are still hovering near the trading zone of 10550 – 10800 levels. This shows there is an ongoing distribution for many months. Predicting the sideways pattern is most challenging as there are a few equally probable scenarios. Only when the pattern is near completion we get high conviction trade setup. It is therefore prudent to keep evaluating the ongoing pattern under formation. For now we are assuming Diametric pattern is continuing since there was expansion in earlier legs and contraction so far. Also wave f size has been similar to that of wave b shown in Figure 3. Ongoing wave g on upside can take prices towards 10900 levels. It will be a tough call to make whether new highs will be touched or not but we can expect more of a double top type of scenario where wave g will terminate near 11000 – 11100 zone ideally. We will keep a close watch on momentum as and when prices approach that range and mention it in our short term updates.
Nifty daily chart – (anticipated in monthly update on 7th June 2018)

Nifty daily chart – (Happened)

Nifty daily chart – Gann Projection levels (showed on 7th June 2018)

Anticipated – It will be a tough call to make whether new highs will be touched or not but we can expect more of a double top type of scenario where wave g will terminate near 11000 – 11100 zone ideally. We will keep a close watch on momentum as and when prices approach that range and mention it in our short term updates.

Happened: The above charts are self-explanatory that shows how markets have moved. We have been expecting such trend and anticipated it more than a month back. The only change is in momentum. The move on upside is euphoric maybe to suck in the maximum retail participants. I am not trying to catch a top unless the support levels are broken but this is the time to be alert again!
I turned bullish when majority were expecting break below 10500 levels again based on Time cycles and other Neo wave methods.
Gann projections – If you look at the 3rd chart carefully you can see the Gann projection given as 11078 and the high touched by Nifty is 11078.30 to be precise. So will this Gann projection work again?
So what is next from here? Is this up move going to continue towards life time highs or are we going to see the distribution again!
Imagine the power of trading if you know which tools to use and you can also time it well, For years I have worked on various patterns, methods and cycles and finally drilled down to these methods that has helped me to forecast the turns so accurately – Elliott – Neo wave, Hurst’s Time cycles and Gann projection levels! Learn these methods yourself in the upcoming two days training seminar on 21st and 22nd July in Mumbai, Hotel Radisson. Only a few seats left, ACT NOW – Know more
Get access to the daily equity research report and the monthly update to get holistic view on markets and what should be the trading strategy. We have been able to capture the important turning juncture time and again and prices are now at the levels where things are turning euphoric! Is it time to be against the crowd or there is more steam left? Get access here

Wednesday, July 11, 2018

Tata Elxsi – 18% returns in just 22 trading sessions!

You might have seen me talking about the theme of the year is IT sector. It has played out exceptionally well and you can clearly see how strongly IT stocks are performing including largecap stocks like TCS.
Now below is the stock recommendation which was given in our Multibagger research report on 11th of June when the stock was near the zone of 1225 levels. Today it touched an intraday high of 1452 levels. That is a whopping 18% gain in just a month’s time!!! Also this is during the corrective phase of the market.
See yourself below chart of Tata Elxsi which helped us to be bullish at such lower levels:
Tata Elxsi weekly chart:

The above research about L&T Infotech was published on 11th June 2018 in our “The Financial Waves Multibagger update”.
Tata Elxsi price on 11th June 2018: 1225
Time Horizon – 1- 2 years
Investment – 5% of capital
Target price – ……..
Stoploss – 700
Tata Elxsi is in the Computers-Software sector. The current market capitalization stands at Rs. 7,691.14 Crore. The company’s P/E ratio is at 37.70.
Elliott wave perspective: As shown in Weekly chart of Tata Elxsi wave (iv) of [5] is probably complete and prices are moving higher in the form of wave (v). Any dips can be used as buying opportunity in this stock for the target of ……….
One can start buying this stock at current levels and add on dips towards …….. and can maintain stop around 700 price levels which is near the starting point of wave (v).
Conservative target for this stock can be maintained at ………. on the upside
Happened: As mentioned prices exhibited a sharp move on upside and has performed as expected making a high of 1452. It is interesting to see that Tata Elxsi has provided nearly 18% return in just 22 trading days. So what is the target level?
We also published today another stock that has potential to provide multifold returns. Do not miss out on the next big trending opportunity. Also keep in mind there is always a risk involved and the investments should be done by maintaining strict stoploss. This is a systematic approach to create wealth.
The above research clearly shows how one can capitalize the study of Elliott wave and ride the ongoing trend. If you wish to build portfolio we can help you with indentifying the stocks which can give alpha returns over medium to long term holding period. Subscribe here now
Learn the above methods of identifying Multibagger stocks and portfolio creation to create true wealth. You can now get the tools that I personally use in the upcoming two days program on “How to trade and invest profitably using Elliott – Neo wave, Hurst’s Time cycles” Trust me this can be one of the best investments that you can make and take informed decisions for successful trading! Limited seats, Register here

Tuesday, July 10, 2018

Asian Paints – How Fractal nature predicted the strong up move?

We believe in the theory that freely traded markets are patterned and exhibits fractal nature.
This makes them behave in a predictable manner. By pattern we mean that there are certain structures that repeat itself from time to time and can be seen on charts that shows prices of any tradable instrument. The “Fractal Nature” is again an important concept which states that these repeatable patterns occur on varied time scales and can be seen on 1 minute charts to Daily charts to Monthly charts. Fractal structure is seen in nature across from DNA to snowflakes to galaxies and so it is also seen in stock markets which reflect collective emotions and social mood of humans.
Asian Paints weekly chart: (anticipated on 14th May 2018)

Asian Paints weekly chart: Happened

Following was mentioned on 14th May 2018 for Asian paints in the daily research report –
On weekly chart of Asian Paints, you can see that the entire rise had been strongly impulsive. The month long consolidation looks to be finally over in the form of wave (4) and we are now moving in the form of wave (5) on upside. This stock has given a multi-month breakout and can be headed atleast towards 1400 levels or higher.
Fractal Nature: There is a classic pattern repetition which shows Fractal nature at its best. We can clearly see a similar pattern in lower degree wave 4 and not the primary degree wave (4) also showed very similar pattern and a positive breakout. You can see the power of Fractals here. We can expect a similar outcome which is a strong rise in the form of wave (5)… BANG ON!
Happened: Asian paints showed strong rise and the stock surpassed the previous high as well. Stock is trading at life time high levels irrespective of the price of Crude which is a major input raw material for paint industry.
The above clearly shows power of Fractal nature and if you can identify a pattern in the past the same can be used to forecast in future for trading or investment perspective.
Subscribe now to “The Financial waves short term update” and see yourself various methods including the above that we use for forecasting the trend. Get more details here
Attend the Most advanced training on Technical analysis – Elliott wave, Time cycles, Neo wave and see how various basic methods are combined together along with advanced concepts to derive the best of the trades. We turned bullish on markets when Nifty was near 10600 and forecasted 10900 levels. You can now learn these methods and apply it by yourself for trading profitably… Know more

Monday, July 9, 2018

Escorts: Will this stock form an important low?

Escorts had been a laggard for many months but this stock has again arrived near important juncture. So, what is the technical picture suggesting? The below research gives the bigger term trend for the stock.
The below research is picked up from “The Financial waves short term update”
Escorts Daily Chart:

Elliott Wave analysis: Following is picked up from morning Equity research report

In the previous session Nifty Auto closed on a positive note and the same was reflected on Escorts as it closed 1.44% positive.
As shown on the daily chart, the prices are quoting at the channel support & in the previous instances the prices have bounced back from the support hence we are expecting the same to occur in the upcoming sessions. We can see that the Ending Diagonal pattern is under formation and currently wave a of (v) is ongoing.
As shown on hourly chart, (shown in daily research report)
In short, Escorts is at crucial juncture. A break on the upside beyond ….. levels is expected to take the prices higher towards …… levels …….
On the above chart can you see brilliant application of channels, Elliott wave counts, Time cycles and much more. Get the detailed analysis on stocks along with Nifty, Bank Nifty in the daily equity research report – The Financial wave short term update. Subscribe here
How to apply the above techniques?
Learn step by step process to become an expert trader by applying the above methods and have the thrilling experience of capturing the major reversals. Attend the training on 21st – 22nd July 2018 on Elliott wave, Neo wave and Time cycles. No prior knowledge of technical analysis is necessary as we will be sharing across video links before the training itself. Limited seats left! Register here

Monday, July 2, 2018

Is correlation between Nifty and Crude Oil a MYTH?

Crude is one of the highly traded energy commodities and keeping close watch on the same is very important. On media or business news channels we have seen many times that experts speak about the impact of Crude prices on Indian Equity Markets.
You may have heard that rising crude prices are bad for economy and thus it will have negative impact on stock market or falling crude prices are good for economy. These are the two important phrases which we have seen on media many times. However to be objective in the market, it is very important to look at the trend of each of these asset classes and also to understand if stock market is really moving on back of volatility of Crude or not!
Following is the research by Ashish Kyal, CMT published in Journal of Economics by National Institute of Banking Management (NIBM – Pune) and circulated across the banking industry.
Nifty and Crude Oil- Understanding the relation

We have placed both these asset classes in the same chart to understand the overall correlation. Here we can see that in the year of 2008 it was the Indian Equity Market which formed a top earlier and then after few months Crude followed the trend of Indian Equities and started to move lower. Post the same in the start of 2009 both these assets formed a low more or less in the same month. From the above chart it can be seen that high direct correlation existed from 2008 till 2010 between Nifty and Crude prices.
In the period from last quarter of 2010 to first quarter of 2011 there was an inverse relation during which Nifty showed sharp fall but Crude continued to move higher. 
From 2011 to the mid of 2013 Crude and Nifty both moved in tandem. This was the period where predictability would have become easier depending upon the trend of other asset class. However this relation fade away and then we witnessed inverse relation from mid of 2013 to the mid of 2015. This was the period when people came out with the frame that falling crude prices are good for Indian Equities. However after mid of 2015 Crude and Nifty both started to move lower.
The period from mid of 2015 to start of 2017 was period again with high correlation and it showed direct relation. Interesting thing to observe was that both these asset classes moved higher together. Isn’t it surprising to see this?
Case in point: From the above observation it can be said there are different periods in which Crude and Nifty had direct and inverse relation.  Here we can also see that period of direct relation was longer than that of inverse relation.
The above chart clearly shows that it is “Myth” that rising Crude prices have negative impact on Indian Equity Market. The fact is that both these asset classes have continued to follow their respective trends in which they existed.
Food for thought: If low Crude Oil prices are good for Oil Marketing companies like BPCL, HPCL, IOC which has showed exponential rise and has provided support to the Nifty in last few years. On the other side there may be a case that high crude prices can increase the profitability of companies like Oil India, ONGC, Reliance Industries which has one of the highest weightage on Nifty and Sensex and thus greater support can be expected from Reliance in coming years.
In short, judging the performance of Indian Stock Market based on Crude prices is not a good idea since there is no consistency in the correlation and thus one should follow objective technical tools to understand the overall trend.
Learn the application of above techniques on different markets – Equity, Commodity and Currency in the upcoming training on 21st and 22nd July in Mumbai and develop trading strategy. Know more here

Friday, June 29, 2018

How to become a trader? What are the steps to follow?

I am sure many who are new to trading would be confused on where to start as there are plethora of information and methods available. When I started my career I had the very same question but unfortunately no one to guide or advice on how to move forward.

So I ended up reading anything and everything I came across involving large number of techniques mentioned in various books. Slowly and steadily I realised there has to be a few methods that appeal to you most that you have to build up on.

My journey started learning the most basic methods of technical to the most advanced concepts of Elliott wave, Neo wave, Hurst’s Time cycles and Gann projections.

I know the pain of not knowing how to proceed and have worked hard without finding a mentor to suggest corrective path. It is then I decided to impart whatever I have learned in the simplistic way for anyone who wants to walk the similar path of becoming from novice to expert trader.


So here is one basic method that I found amazingly helpful in increasing the accuracy. Below is my latest webinar where I discussed a few methods in detail:


It does not matter if you are not aware about basic technical analysis. If you are attending my seminar on 21st – 22nd July 2018 in Mumbai on Elliott wave, Neo wave and Husrt’s Time cycles, I will ensure to share across enough materials for someone to be aware about what is technical analysis even before they attend the training. To Register Contact us here or Email us helpdesk@wavesstrategy.com

Cheers,
Ashish Kyal, CMT


P.S. – I hope the above is atleast providing some assistance in direction of systematic and scientific approach to trading

Wednesday, June 27, 2018

Nifty: How to trade Neo wave Diametric pattern?

Diametric pattern – Understanding Nifty medium term pattern by applying the concept of Advanced Elliott wave – Neo wave theory to forecast the next trend.
For successful trading it is very important to understand the overall price pattern. Unless the pattern is clear it is best to avoid the trade.
Below shows how a text book Neo wave Diametric pattern markets are exhibiting
We are closely keeping on tab on Nifty’s price structure along with time taken by each segment to know the pattern under formation. This helps us in forming different strategies so as to leverage from ongoing pattern.
For option traders it is most important to know that whether current trend is going to be sharp or will it take more time to move higher?
Below is the part of research taken from “The Financial Waves Short Term Update” which indicates that there is high probability of Nifty forming Diametric pattern which is 7 legged pattern defined under Neo wave.
Nifty daily chart Diametric pattern:

Wave analysis:
Nifty has closed below the immediate support of 10700 on downside and serious selloff has been seen in stocks from Midcap and Smallcap space.
It is very important for you to understand the overall pattern under formation so that atleast you are aware that prices are near the cusp. Few days back we published an article mentioning that Is Nifty top in place again! You can read it here
As shown on daily chart, prices are forming a Diametric pattern. This pattern is recognised in Neo wave as a 7 legged correction and can take a form of either Bow- Tie structure or a Diamond shaped structure. In the above chart we can see a Diamond shaped Diametric pattern.
Each legs are corrective and we are currently in wave g. As of now it is too early to conclude that the entire wave g is over and a major top is formed but it definitely indicates that 2018 is not going to be the market for investors. However, for traders there will be ample opportunity as volatility is going to be high providing big swings. To encash the next big trend on markets you need to combine this Neo wave pattern with Time cycles.
It is not a 100% accurate theory. There are times when things get challenging but when the pattern is near completion we get a very high conviction trade setup just before the big move can happen.
Trust me there will be many trades where you will gain and lose little but only a few big trades will make up for all the hard work and efforts that are put in.
So what is the next big trend and how to capitalize on the ongoing move?
Subscribe now to “The Financial Waves Short Term Update” which covers Nifty and 3 stocks with in-depth research. For more information visit Pricing Page
Attend the most Advanced Training on Technical analysis – Trading using Neo wave – Advanced Elliott wave and timing the key reversal areas using Hurst’s Time cycles. The training will be held on 21st and 22nd July 2018 in Mumbai. For more details Contact US or write to us at helpdesk@wavesstrategy.com or what’s app us on +91 9920422202 call on +91 22 28831358 and avail early bird offer!

Friday, June 22, 2018

Thursday, June 21, 2018

What is Hurst’s Time cycles ? Amazing application on Bank Nifty!

J.M. Hurst suggested that there are certain standard cycles which are universal and can be applied on any asset classes. Many cycle analysts often complain that cycles vanish without giving prior indication. The major reason being interaction of different cycles of varying magnitude.
The subject might look complicated but it is no different than Elliott wave principle. The major difference is Hurst Cycle analysis helps us to predict time and Elliott wave focuses more on price. This element of time can help us to forecast the Elliott wave pattern that can form in future.
As shown in below chart we have applied Time cycle on Bank Nifty Daily chart along with Neo Wave. The important part of Hurst Cycle is that if you know that major as well as smaller degree cycles are citing towards probable bottom or top then you can save yourself from making wrong trade. In market “when not to trade is the key to success”.
Bank Nifty daily chart:

The above chart clearly shows important areas when Bank Nifty formed lows near the cycle. We have turned bullish based on these lows. Also a few days or maybe two weeks prior the markets topped out. This time it was no different and we can clearly see it topped out in middle of the cycle so far. So by applying cycle analysis you can know when important lows or tops should be formed.  
This study of cycle analysis is independent of price forecasting that we do using Advanced Elliott wave i.e. Neo wave.
Imagine the power you will have if Time cycles and Neo wave price pattern both are in sync and pointing towards same direction.
Equity research report – Also we show the detailed Neo wave counts in our daily equity research report “The Financial Waves short term update”. Subscribe now to “The Financial Waves short term update” and see yourself where is Nifty and stocks headed from here on. Visit Subscription page here
Upcoming Training on Time cycles & Neo wave– You can learn these methods in the upcoming training on Advanced Elliott wave – Neo wave, Hurst’s Time cycles. All of these methods when combined together have resulted into brilliant outcome. Also before the training itself, there will be FREE Elliott wave video links shared across that will ensure you can learn even the basics of technical analysis and Elliott wave well before the two days’ workshop. There cannot be better investment than this. Post the training Mr. Kyal himself will be more than happy to clarify the doubts by starting a special Discussion forum meant only for the attendees where you can post your personal charts and trades. Register NOW as only a few seats left. For more details visit Training on Time cycles and Neo wave or to block your seat today itself directly call / whatsapp on +91 9920422202. Trust me this can be one of the best investments you can make!

Wednesday, June 20, 2018

Is currency – USDINR sending warning sign for Equity markets?

At times it is important to have a closer look at the other asset classes to gauge the direction of equity markets. Now below is the chart of USDINR which we published in our monthly research report in month of May 2018.
We turned positive on USDINR when it broke above the level of 64.50 and it recently touched high of 68.60 that is a huge more than 6% depreciation in INR that too in short span of time.
USDINR has moved precisely as expected and showed a strong rise post the below research was published. Prices moved from 67 levels to high around 68.60 in just over a month after we published the report. This simply shows power of Elliott wave and how it has helped us to capture the sharp depreciation seen in INR against US Dollar.
USDINR Weekly chart spot (published in May 2018 monthly update)
 Happened:
























Following is the part of research from “The Financial Waves monthly update” May issue:
In earlier monthly update of USDINR we mentioned that, “USDINR looks to be losing momentum on downside. Any break of 64.60 followed by 65.20 will suggest that retracement towards 66.30 level has started where 50% of the prior down move is placed.” USDINR has moved in similar manner and managed to break its multi-month resistance of 65.55 levels making 52 weeks high near 67 levels.
Elliott wave perspective: As shown in weekly chart, USDINR is going through Diametric pattern which consists of 7 waves and each wave is corrective in nature. Wave E has completed on upside near 69.13 levels and next leg in form of wave F completed in the form C failure Flat pattern. The post pattern implication as per this structure is strong breakout on upside. So wave G should be fast and strong. This will eventually result into pressure on Equity prices and will also help Gold to move towards our target levels.  However, we will require positive confirmation above ……. for wave G to start.
The upside target level for primary wave G is near ………. as wave G tends to be equal to wave A near those levels.
As shown in daily chart, (shown in actual research report)……….
In short, USDINR trend looks to be positive and a move towards 68.90 levels can be expected with support placed at 65 levels. Further break above 68.90 levels has the potential of taking the prices towards …….level and we will see everyone talking about INR as soon as prices move above 68.90 levels. So, it is time to focus on USDINR and Gold as an asset for investments whereas Equity might slowly loose its shine in 2018! BANG ON!
We have been to the point in terms of levels for USDINR. We have observed high correlation between USDINR and Equity markets during major turning juncture. The same is plausible even now when USDINR will break above 68.90 and equity markets will eventually start seeing a strong negative reversal. It is time to be alert and not complacent. If you want to know next big level for the currency get access to the monthly research report now!
Also there will be various news revolving around the currency pair after the move has happened. But seriously how does it help! So acting based on chart patterns is the key to make a killing in markets and you will not get such high conviction trade setup very often.
In case you missed my earlier research on how I predicted major turning juncture on Nifty over past few months – you can read the complete research here
Get access to “The Financial Waves monthly update” and see yourself where is Nifty, Bank Nifty, currency headed from here. For short term updates you can subscribe to daily Equity and Forex research report. Act now – here is the link
Want to learn how we have been predicting such big moves in short span of time. This is the power of Elliott wave, Neo wave combined with Time cycles. You can now learn these techniques by yourself in the upcoming trading workshop on 21st and 22nd July 2018. Limited seats, act now – Know more

Tuesday, June 19, 2018

Is Nifty top in place again? Are you ready for another BIG trend!

Nifty had been drifting lower over past few days and prices are on verge of breaking another important support level on downside. The weakness now seems to be global and not local. It is time to “cash the crash”!
In below charts you can see how we are able to capture the top near 11000 levels, then low again near 9950 and now we are back towards very important juncture.
On 2nd February morning research report we mentioned the following – it seemed to be a populist Budget like everyone expected but introduction of Capital gains is going to result an impact which is not yet discounted maybe due to artificial support. Trade carefully as the swings can still be big over next few days!
Subsequently following chart was published on morning of 5th February 2018 –
Nifty hourly chart – published on 5th February 2018-
Following was mentioned on 5th February morning research report – trend for Nifty remains firmly negative as long as 10880 is intact. Keep riding the trend using trailing stop method and the positions are already in the money that shorted on break of Budget low. Such sharp trends are rare but market did provide us with warnings before reversing.
Happened over next few days:
The above clearly shows how the top was captured and there was a fall of more than 700 points in less than 4 days!
Now we did not only anticipate the crash but also captured the rise. Below is the chart from the monthly research report published on 7th March 2018
Nifty daily chart – published on 7th March 2018
Following was mentioned on 7th march 2018 when majority were turning bearish and look at the upside target levels given near 10800 – 10850!
Happened: as of 18th June 2018

Happened: Nifty touched intraday high of 10929 but the highest close has been near 10856 levels post the projection made on 7th March 2018.
The above requires little explanation and shows the power of Time cycles combined along with Elliott waveNeo wave and various methods together. We captured the top near 11000, fall near 10000 and now is the time to be alert again!
The question now is – Are we headed for another crash? if we are right again this time how far will the current selloff go? Is it just the beginning and what are the key levels to watch that will provide strong negative confirmation?
Trading is always about evaluating the prudent risk reward ratio and then trying to trade systematically using strict stoploss. Even if there is a pullback then it is going to be only temporary and we will head much lower!
So do not miss out on next big move in Nifty and stocks, Get access to daily equity research report – The Financial waves short term update and see yourself where are we headed from here. Also get Monthly research report The Financial Waves Monthly update to see the medium term forecasts on Nifty, Bank Nifty and much more. We are at the cusp of next big move and you cannot afford to miss this another opportunity – Get access here
Attend the training on Most advanced technical analysis ever – Elliott wave, Neo wave, Hurst’s Time cycles and learn yourself the various methods I personally use for trading and forecasting such big moves. Trust me this can be the most important investment you ever made! Also get free Elliott wave CDs worth 6 hours even before the actual training along with free access to research reports that too at this crucial juncture. It cannot get better than this – know more here

Wednesday, June 13, 2018

How to make more than 10% over short term when Midcap index was down by 10%?


Over past month we have seen serious selloff in Midcap and Smallcap indices. Midcap index infact corrected by more than 10%. But even during such time we have been able to identify stocks that defied the gravitational pull and moved higher.

Dabur is one such stock that we recommended in our Multibagger research report based on various studies like Time cycles, Elliott wave, indicators

See yourself how Dabur defied the down move seen on Midcap index and moved sharply higher.

Dabur daily chart compared with Midcap index


Multibagger stock recommendation: Dabur

Buy Price – 340 - 350

Time Horizon – 1 - 2 years

Investment – 5% of capital

Target price – ??? levels (refer the report)

Stoploss - ??? (refer the report)

Refer detailed research below

Wave analysis:

Dabur India Ltd is into FMCG sector with Market Capitalisation of over Rs 61,900 Crore. The major reason to pick up this stock is that it has been into a long bull trend since 2003. The overall structure of this stock is explained below.

Elliott wave perspective: As shown in weekly chart of Dabur, from 2012 to mid-2016 prices moved higher from the levels of 92 to 316 levels in the form of primary wave …… which is more than 240% increase. After the strong bull run this stock was contained within a consolidation and prices drifted lower from the high of 316 levels to 265 levels in the form of wave …….. Post which prices completed wave

108 weeks cycle, Channeling technique: and much detailed explanation given in the Multibagger research report.

In a nutshell, various indicators like Time cycle, Exponential Moving Average, Elliott wave counts and channel technique suggests that we can expect this stock to rally towards ….. levels over next 1 to 2 years with …….. as very important support.

The above analysis clearly shows how one can still identify the stocks from positional investment perspective. Even when the broader markets were in doldrums this stock managed to move higher all the while. It has been slowly and steadily garnering momentum but all investments have to be done with strict stop that we mention in our “Multibaggerresearch report”

Create your portfolio of stocks that have potential to give 80% to 100% returns over 1 to 2 years. However, one has to take a systematic and disciplined approach using stoploss and partial profit bookings for capital protection. Create wealth using scientific method. Subscribe now to “Multibagger research report” here