SBI downgraded by UBS but the Elliott wave structure showed us the leg down is imminent 3 days prior...

SBI downgraded by UBS but the Elliott wave structure showed us the leg down is imminent 3 days prior to this down fall after SBI reuslts…

(Reuters) - UBS downgraded State Bank of India to "sell" from "buy", saying a weak monsoon would add to its "already high" non-performing loans, while expecting margins to decline due to rising cost of funds and potential cuts in the lending rate.

The stock fell 4.5 percent to 1,968.75 rupees on Thursday, its biggest daily percentage fall since February 22, because of worries it would report disappointing earnings.

SBI Elliott waves research clearly showed us that atleast one down leg is pending. The below article was published in morning of 8th August 2012 before the markets opened and SBI was quoting at 2060 before the opening. As of now SBI is having steep sell off and is moving down as we quote.

The below chart of SBI show what has happened and why we were bearish on this stock by looking at the Elliott wave structure.

SBI Daily chart:

Published on 8^th August 2012 before market opened quoting at 2060

SBI Daily chart as on 10^th August 2012, 12:45 pm, currently quoting at 1910

Wave Analysis:

As shown in the daily chart of SBI, prices have breached the blue channel on downside. We have completed Wave x at around 2250 levels and have started the first leg of wave y on downside. Wave Y can now be a zigzag or a flat correction and can move below Wave w.

Previously we have shown a possibility of impulse wave on upside. But however we showed that the up move is overlapping and non impulsive. Break of prices below 2100 confirms that the up move was only wave x and not start of new leg up. Prices are still moving in second correction of wave B.

We can observe in 120 mins chart that prices are now in wave b of wave y. A move below 1950 will confirm that wave c has started down towards ……..

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