Nifty: Path ahead in 2017 with Intraday trading strategies!

Below research highlights how to trade Nifty on intraday basis using time tested methods like Elliott wave, Channels, basic technical indicators.

Until last week there was extreme pessimism among market participants as Nifty was moving lower and violated the earlier lows 7915 level. However we continuously mentioned in our daily update that prices have one leg on upside pending as per Elliott wave pattern. Nifty made a low at 7893 and then reversed sharply on upside. We at Waves Strategy Advisors have coined a pattern as “h shaped pattern”. This pattern is identified by us (not in text book) on many occasions. It takes the shape of “h” where prices retest the earlier lows with less momentum and then reverses on upside to trap the bears.

Look at the below chart that was shown in our Monthly research report on 6^th December 2016:

Nifty daily chart

Happened so far:

The above chart clearly explains irrespective of the events Nifty moved closely to the path shown in the “The Financial Waves Monthly research report” published on 6^th December. It formed an “h” shaped pattern and reversed back after turning majority bearish. The above research is only to showcase the power of the study and the predictability it carries. There is more to it.

January 2017 is going to be highly volatile and a strong trending month if our readings are correct. It is time to have the trading strategies in place to capitalize the ongoing medium term and short term trend. Many believe intraday trading cannot be done using Elliott wave. Now below is a concrete proof of how we helped our subscribers capture the intraday swings. The following is published in “The Financial Waves trading update”

Here are the Intraday trading strategies of last few days which has exactly moved in lines with our expectations.

Strategy of 26^th December 2016: Short positions can be created on move below 7940 with day's high as stop and target of 7900.

Happened: Nifty broke below 7940 and moved below target level.

Strategy of 27^th December 2016: For today, Long positions can be created only on move above 7960 with 7920 as stop and target of 8000.

Happened: Nifty moved higher exactly as expected and crossed above the target level of 8000.

Strategy of 28^th December 2016: For today, long positions can be created if Nifty sustains above 8050 for 30 minutes with 8000 as stop and target of 8100.

Happened: Nifty moved exactly as expected and touched intraday high of 8100.55 levels.

Strategy of 29^th December 2016: For today, long positions can be created if Nifty move towards 8020 and then bounces back above 8060 with 8020 as stop and target of 8100.

Happened: Nifty has been moving exactly as expected and prices after forming a low exactly near 8020, crossed above 8060 and achieved the target of 8100.

Strategy of 30^th December 2016: For today, long positions can be created on move above 8115 with 8060 as stop and target of 8170.

Happened: In today’s session Nifty has touched the high of 8180 level which has achieved our mentioned target level.

The above successful strategy clearly shows that our research tools such as Elliott wave, Time cycles and basic technical indicators has continued to work well and helping us to build accurate intraday trading strategies along with long term forecasts.

Still thinking! Now get both the above research reports – Monthly update and Nifty trading strategy for FREE. Yes, you will get these research reports at no additional charge under “New Year Offer” until 31^st December 2016 11:59 pm, if you subscribe to our flagship product “The Financial Waves short term update”. Time is running out not only for the offer but for markets as well. The strong trend is now about to emerge in January that will be surprise or a shocker to majority! For subscription options simply visit the Pricing page and select “Equity research report” and Period as 12 months to avail this offer which is INR 24000 /- worth of FREE research report. We will take it from there! Get prepared for a roller coaster ride!!! For more details Contact US or write to us at helpdesk@wavesstrategy.com

Stock picks Nifty and Stocks by Ashish Kyal on ET Now

One needs to be patient for the trade setup to take place before pulling the trigger. We in our daily research report “The Financial Waves short term update” cover the important index stocks along with Nifty that shows application of Elliott wave, advanced technical analysis as well. Subscribe now and avail the NEW YEAR Offer in which on subscription of Equity research report you will get Monthly research report along with Nifty trading strategy absolutely Free. For more details Contact US here or write to us at helpdesk@wavesstrategy.com or whatsapp on +91 9920422202, Tel:  +91 22 28831358.

Gold: Path ahead in 2017! Elliott wave analysis!

Understanding the trend of Gold on year on year basis with Elliott wave, moving average and channeling technique.

The year of 2016 is going to complete in next 2 days and it is important to know how Gold prices have behaved throughout the year. Here we can see that year of 2016 started with reversal on upside and Gold moved higher from 24500 to 32500 level within a span of 6 months. In this period’s bulls completely ruled and outperformance was witnessed. However post that Gold topped out and since then capitulation is ongoing. Assuming that prices can close the current year near 27000 level, Gold will still manage to gain 10% from the start of 2016. So what this indicates for 2017? Will next year Gold retest the high of 32500 level or low of 24500?

Below we have shown Gold chart taken from “The Commodity Waves Short Term Update”. Here we have hided the wave counts which is shown in original report. The important thing to watch is that prices were continuously finding resistance of 10 days Exponential moving average and recently prices have managed to cross above the same. This indicates short term reversal.

MCX Gold Continuous Daily chart:

(Part of research taken from today’s “The Commodity Waves Short Term Update”)

Wave analysis:

In the last update we mentioned that, “prices have retraced the last leg of down move in faster time which was not seen in the entire down move. This increases the minute wave (v) of wave (c) might have completed.”

In the last trading session Gold consolidated in a range. Post the sharp rise, this kind of consolidation indicates positivity.

As shown in daily chart, RSI has reversed from the zone of 30 level along with positive divergence and has given close above the prior bars high. This has changed daily bias into positive side. Close above 10 days Exponential moving average indicates that trend is reversing on upside. Now as long as prices hold above prior bars low trend will remain positive.

(60 mins chart is not shown purposely which is covered in the original report with Elliott wave)

As shown in 60 mins chart, prices look to be trading in minute wave ….and post the same Gold should move higher. 100 periods Exponential moving average which acted as resistance earlier will act as support now as per polarity reversal. On downside 26970 will continue to act as important support.

In short, Gold trend is positive. Move above ……

To know the proper trading strategy and understand the short to medium term trend of Gold, Silver, Crude and Copper, subscribe to “The Commodity Waves Short Term Update”and get “The global Waves STU” Free with It. for more information visit Contact US

Top 3 stock charts for Swing trading based on Dow Theory, Channels, Moving averages!

Below article shows how swing trading can be done based on trend identification using technical analysis concepts & indicators like Dow Theory, Channels, Moving average and RSI.

There are different types of traders in a Financial markets.  The one who buy and sell in a single day is called an Intraday trader. A variation to that are the ones who capture the swing based on demand and supply and rides the short term trend as long as it goes with trailing stop method. As compared to Intraday trading, Swing trading is less emotionally challenging as it does not require constant watch on market once you have a strong research based system in place that provides entry, exit and profit taking strategies. 

Below we have shown 3 stocks and explained how Swing trading is possible based on Technical concepts like Channels, Moving averages and RSI.

Ajanta Pharma 60 mins chart:

The above 60 mins chart of Ajanta Pharma suggests that since October 2016 downward trend is ongoing. For swing traders it is important to trade in the direction of medium term trend which is negative from last 3 months. Looking at the channel support, any rally towards 1830 - 1840 along with negative bar formation near the channel resistance is going to provide shorting opportunity for swing traders. This will also ensure proper risk reward strategy. Reason to avoid buying is that the medium term trend is negative which is indicated by Moving average and channel. So the best of the trend can be captured in downward direction and so once the stock reaches the resistance levels and reverses from there we will get amazing risk reward ratio for big profits!

Mindtree 60 mins chart:

As opposed to above chart of Ajanta Pharma that shows downtrend, Mindtree on the other hand is clearly showing higher highs and higher lows that confirms that the trend is up. This simple technique is explained as per DOW Theory which is the foundation of Technical analysis.

Since start of November 2016 Mindtree is managing to protect the pivot lows. The stock has potential to reach towards the upper end of the channel near 540 – 545 levels as long as the pivot lows are protected.

Just Dial 60 mins chart:

It is interesting to see how two stocks from same sector can behave so differently. Justdial has continued to move lower in medium to long term downtrend. The outlook is similar to that of Ajanta Pharma shown above which is any pullback towards the level of 350 – 360 will provide good shorting opportunity once we see reversal signs from there. Channeling technique along with RSI is working well to capture the swings in the direction of trend.

The above charts simply represent how one needs to be patient for the trade setup to take place before pulling the trigger. We in our daily research report “The Financial Waves short term update” cover the important index stocks along with Nifty that shows application of Elliott wave, advanced technical analysis as well. Subscribe now and avail the NEW YEAR Offer in which on subscription of Equity research report you will get Monthly research report along with Nifty trading strategy absolutely Free. For more details Contact US here or write to us at helpdesk@wavesstrategy.com or whatsapp on +91 9920422202, Tel:  +91 22 28831358.

Nifty: Understanding Time cycles along with Elliott wave counts!

Nifty has been drifting lower since past 11 days and has finally showed some buying attempt from the zone of 7900 – 7915 which was the lows made on 21^st November 2016

Important thing to note is that majority of the Global markets have been moving in a stable environment with a positive bias when Nifty drifted lower. Such independent movement makes the trend susceptible to sudden reversal which we are witnessing today.

Let us try to see the broader Time cycles that has worked very well in the past along with Elliott wave counts:

There are times when predictability is low as it is difficult to decipher the pattern under formation when we are in middle of a correction but when any pattern is near its completion the forecasting ability increases drastically. In above chart we can clearly see how Time cycles have been combined along with Elliott wave counts. Time Cycles continue to be in sell mode atleast till end of January and the pattern is also getting clearer.

We are in final stages of completing the medium term uptrend started in late February 2016 post which the final panic selloff will kick in which will ensure majority are out of the markets just before a big BULL TREND. And all this action is not going to take much time since we have already consumed desired number of months or rather years of correction.

In simple terms we can expect volatile market movements over next few months in up down type of action before the next strong trend starts. But during this up down scenario short term opportunities can be explored with strict stoploss and taking profits off the table as soon as possible. Look at the short term - intraday trading opportunities given in our daily Nifty report:

On morning of 26^th December 2016 we mentioned that “Short positions can be created on move below 7940 with day's high as stop and target of 7900." BANG ON! Nifty broke below 7940 and moved below target level 7900 on 26^th itself.

On 27^th December i.e. today morning we mentioned the following “Long positions can be created only on move above 7960 with 7920 as stop and target of 8000”

Happened: Nifty moved above 7960 and quickly crossed the target of 8000 as well on upside in today’s session.

To know what is the next probable path markets can follow along with detailed analysis and internal Elliott wave counts, detailed Time cycles on Nifty, stocks, Bank Nifty subscribe to “The Financial Waves short term update” and get free access into Monthly research report as a New Year offer that ends in next 5 days along with trading strategy. January 2017 is going to bring in some huge volatility and the time to prepare for this cannot be better! For subscription options visit Pricing Page and select Equity research report. For any queries Contact US

Breaking Down Exchange Traded Fund(ETF)!!

In simple words, ETF is a basket of assets like an Index fund. But unlike mutual fund ETF can be traded as a common stock on the stock exchanges. Like any other stock prices of ETF keep on changing as it is traded has it is brought and sold throughout the day by the investors.

The below Info-Graph provides detail explanation of ETF:

Pic Courtesy – mint.com

ETFs are a useful and different source of investment. If they are clubbed with Mutual Fund benefits, they can definitely create wonders in your portfolio.

Know more about it in detail and get your Investments started along with us with our very own Elliott Wave Research and Expert Advisory. 

Click HERE for details.

Tata Motors inverse Head & Shoulder pattern and Elliott wave counts!

Below article gives detailed technical analysis on Tata Motors with concepts like Channels, Trendline, Elliott wave, Pattern.

Indian Equity markets have been able to digest the negative news so far especially when it is on back of a Global event. BREXIT, US Trump outcome, FED rate hike all of these events resulted only into a temporary move on downside and prices recovered back sharply on same or next day. This clearly highlights the fact that news or events do not drive the markets but only produces short term volatility or random moves. The original trend eventually resumes and it is therefore important to understand the objective techniques like Elliott wave, Time cycles, crucial support and resistance levels.

Let us look at how a few of these methods can be applied on stocks like Tata Motors. The below chart is picked up from our daily research report “The Financial Waves short term update”

Tata Motors 60 mins chart:

Wave analysis: (below research is from report published on 14^th December 2016)

Despite of Tata Group being in news in the recent days, Tata Motors managed to close at the second position in the top gainers list. The reason can be contributed to the buying of Tata Motors near 486 levels by Tata Sons but as per the chart itself we were seeing accumulation pattern over past few weeks.

Now looking at the daily chart of Tata Motors (shown in actual research report), minor wave a is complete and now wave b of (X) has started on upside. This wave b can retrace towards …… levels which is also the Gap area created on back of the news or event few weeks back.

On 60 mins chart we can see that, post breaching the red channel support prices failed to move lower and completed minor wave a at the lows of 430 levels. Currently retracement of the previous down leg is ongoing in the form of minor wave b. Prices have now re-entered the channel. Another important thing to notice is that this stock has formed an inverse Head & Shoulder pattern and just managed to break the neckline which adds on to near term positivity.

In short for Tata Motors, near term trend will be positive as far as the recent low of 450 levels is intact. On upside, prices should continue to rally towards …… levels which is the head target and also the 61.8% retracement zone.

Subscribe NOW to “The Financial Waves short term update” to see crucial turning juncture and how to trade Nifty, Bank Nifty, stocks amidst all the negative news using important support and resistance levels. Simply visit Pricing page and select equity research report. Also subscribe annually and get Flat 30% discount with Free Global research report!

Nifty: How Bollinger Bands(R) can be combined with Time to know trend!

Understanding the trend of Nifty applying Bollinger Bands combined with Time.

The month of November 2016 was trending for Indian Equity Markets in which Nifty moved lower from 8600 to the low of 7915. However as against to that in current month there is choppy trend. During the choppy environment, short term trading becomes difficult and one should book profits as and when occur to minimize the risk. Bollinger Bands are one of the important tools to apply during the range bound market. However along with this, we also combine Elliott wave along with Time concept to know the probable timing when the next trend can start. Such techniques can help in riding the next waves. Below we have shown part of research taken from “The Financial Waves Short Term Update”published in today’s morning.

Nifty 60 mins chart:

(Part of research taken from today’s morning report)

Wave analysis:

Nifty had a Gap down opening near 8230 in previous session and prices traded in red territory for the rest of the day. The pressure was across with most of the sub-indices closing negative. Advance decline ratio also deteriorated. However, just one day of selling pressure that too when we are aware that the upmove is corrective in nature such type of counter trend moves cannot be ruled out.

Looking at the overall structure it seems that wave c is subdividing and is forming an Ending diagonal pattern.  Yesterday’s down move was only wave … and we should now see wave ….on upside. Please note this wave … is not going to be very strong as in Ending diagonal pattern the momentum keeps decreasing in each rising segment. Also the upside move is limited towards 8350 – 8400 levels and so this leg is going to consume more of time rather than price.

(Daily chart has been removed purposely which is shown in original report)

From Time perspective wave intermediate wave C shown on daily chart, took approximately 60 days and so wave E which is currently ongoing should take more than 20 days to match the 1/3^rd degree. So far from the lows of 7915 it is only 15 days and therefore it is unlikely that wave E will be over is short stint without achieving either price or time targets. This increases the odd that minor wave c of E is subdividing as mentioned above.

As shown on hourly chart, yesterday’s low was near 8154 which was close to the support zone of 8150. Let us see if the same level remains protected in today’s session preferably on closing basis. This is also near the lower end of the Bollinger bands along with the 0-b support trendline and Gap area. So the zone of 8130 – 8150 has cluster of supports and for downside to open we need to see strong breakdown from here on. During a weak trending environment Bollinger Bands tend to provide good support to prices.

In short, we can expect some consolidation between 8130 – 8230 levels for now. Decisive break above …..will confirm our preferred pattern that wave …….

To know the in-depth of wave structure of Nifty, Subscribe to “The Financial Waves Short Term Update”which covers Nifty and 3 stocks where short term trading opportunity exists or “The Financial Waves Trading Update”which includes Intraday trading strategy on Nifty. For more information visit Pricing Page

Webinar: Nifty Technical Analysis Post RBI Policy!

#ElliottWave news channel is a short video series. Ashish Kyal of http://www.wavesstrategy.com/  will be going live weekly at 4 pm every Friday. Stay tuned to know the current technical state of markets and learn more on advanced concepts of Elliott wave, #Neowave and #TimeCycles. Subscribe to the daily research reports by visiting Pricing Page

Small-Mid Caps - The “sweet spot” for long term investors!!

Beat the heat of inflation by investing in Mid caps

Pros:

1)  Happy medium: They are the biggest winning stocks of past decade and can balance the two extremes stability and growth potential.

2)  Tomorrows Large-Cap:  One of the major reason to invest in small & mid cap companies is that they have potential to become a large cap companies. In 2005 Yes Bank was considered 

as a mid cap company but during a span of few years Yes Bank as turned out to become one of the biggest private sector bank in the world.

Cons:

1) High Volatility: The mid & small cap companies are highly volatile when compared to large cap stock. Due to its high volatile nature they can result into major 

fluctuations in shorter span which might be wounding.

2) Uncertain Outcomes: The struggle associated with such firms is high because at initial stages maintaining stability is a task which not all can fulfil. However putting your money in them is like 

betting on a Dark Horse the more the risk the healthier the rewards. They are the best suitable to the risk seekers.

The best way to get rid of the risk associated with this fund is to generate a cushion for it  by investing into the large caps or debt funds which will give balance to the fund and 

also diversify the investments.

Canara Robeco Emerging Equities Fund: Daily Chart:

Canara Robeco Emerging Equities is the best amongst the small cap & mid cap category and it is ranked 2^ndby CRISIL. It aims to generate long term capital appreciation through investing in diversifies mid-cap stocks which have higher probability to turn into bigger corporate in the coming future. 

Portfolio Analysis: As per the sectoral holdings Banking & Finance have been most favored sector for this fund as it is contributing 13.33% to the entire portfolio followed by Engineering & Capital Goods and Chemicals Sector. Top Holdings and Sector Allocation for this fund are shown below.

Risk Profile: The risk associated with this fund is too high because the total investment is focused on the stocks from small caps and midcaps sector. During the corrective phase or bad times this scripts do not have any lower limits to fall which can turn into capital loss. However every coin has 2 sides as these small size companies have potential to turn large which once happens can add bumper returns to your corpus.It is suitable to investors having high risk bearing ability within the age of 20-40 years.

Investment perspective: This fund has maximum exposure to equity and as per our outlook on Indian Equity markets more of corrective action is still left. Parking through sip route is the best option as of now.

Invest NOW in Canara Robeco Emerging Equities Fund online – Click here