The below excerpt is from "The Financial Waves" daily equity research report by Waves Strategy Advisors. For more information visit www.wavesstrategy.com or write to helpdesk@wavesstrategy.com
Today was the 5th time when markets have moved by 130 points in single day over past 15 days.
Movement of more than 100 points is not rare and 2008 downtrend had many such moves. However, sharp reversals in either direction is not seen quite often which has happened this time. Nevertheless we have been mentioning the crucial levels both on upside and downside which have been important to provide the trend confirmation.
Nifty 60 mins chart:
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We have been showing not only 60 mins chart but also Nifty daily chart to provide what we think of the major trend for Indian markets.
In today’s morning report we mentioned that “Indian markets continue to move independent to the world equity markets and is also not moving in sync with USDINR. We predicted an up move in USDINR towards 57 levels when it broke above 54.50 to our currency readers and June expiry made a high of 56.68 in yesterday’s trading session (and touched 57 today). The movement in currency market continues to be a warning sign for Indian equity markets.
Over short term as shown on 60 mins chart, prices have been constantly failing to move above the blue trendline we have been mentioning over past few days.
In short, a move above 6160 will confirm expanding pattern under formation with final leg towards …….. before reversing back on downside or a move below ………. taking out previous up leg faster will carry bearish implication.
On 29th May 2013 in “The Financial Waves” we mentioned following “This time Oil & Gas sector has been leading the way up whereas Banking sector is lagging. In the previous up move before the fall of 130 points it was IT sector that was leading & capital goods showed some strength and Banking stocks were the star performer during the uptrend from 5470 levels. We can clearly see sector rotation over very short period of time and only a few stocks or sectors participating each time. This for us is a major topping process unless we see overall participation from broader market.”
The predictably is going to increase as we expect a strong trending move to start in Indian equities. The sharp reversals over past few weeks looks to be ending and this time it will be a trending move in one direction and do not be surprised to see Nifty moving by 100 points as it is here to stay!
To view the important levels of Nifty along with 3 stocks on opportunity basis along with charts and the direction of trend subscribe to“The Financial Waves” and see it for yourself why we are saying a major move is about to start!!!
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