Waves Capital - Nifty Happened scenarios - Path Ahead:

Waves Capital (www.wavescapital.com): Below excerpts are picked up from past 3 Financial Edge short term updates and this itself proves how accurately we are measuring the pulse of Indian markets. Write to us on helpdesk@wavescapital.com if you would like to subscribe to this Daily research publication on Indian Equity market and see where we are headed from short to medium term.

Published on 3rd Jan 2012:Nifty Daily chart: PATH AHEAD

Published on 3rd Jan 2012 before 8:30 am: We have shown Nifty path ahead on 3rd January 2012 when bearish sentiments were prevailing across the crowd. We were bullish then for a target near 5600 – 5700.

Happened as on 21st Feb 2012:

Happened: Nifty went up in this one side trend from 4600 levels and made a high of 5629 earlier than March. BANG ON!!!

Published on 21st February 2012 before 8:30 am:
Nifty Weekly chart:

Published on 21st February 2012 before 8:30 am: As shown on weekly chart of Nifty we have reached near the very strong resistance trendline since November 2009. This line acted as strong support for many months and shall now act as strong resistance (Polarity reversal)... However failure over next few days will confirm the importance of this resistance zone and we will be looking for trend exhaustion as long as 5650 – 5700 remains intact on upside.

Happened: Nifty failed to cross above the mentioned levels of 5650 and reacted steeply down on 22nd February falling more than 100 points in single trading session.

Published on 22nd February 2012 before 8:30 am:
Nifty 60 mins chart:

Published on 22nd February 2012 before 8:30 am: We believe this trend from 4685 is in its matured state and as long as 5650 – 5700 is not broken on upside we will refrain from initiating fresh long positions…BANG ON!

Happened: Selloff was seen across the sectors with blue chips like SBI, DLF, Tatasteel, etc falling more than 5% and Nifty fall by almost 2% in single day closing at 5505 from high of 5629.

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