Nifty: Is it forming “h shaped pattern”?

Understanding the trend of Nifty with the application of Elliott wave, Bollinger Bands®, trendlines, RSI!

In last few days Indian Equity Market has witnessed high volatility in which sharp downfall from 10140 to 9685 and then sharp rise towards 9948 level. Then again there is retest of prior low. This kind of movement is enough for traders to stop guessing the market. That is why use of objective technical tools is must in this kind of market to capture the next trend.

In the past occasions many times we have seen formation of “h shaped pattern” which is not given in any technical analysis book but it is founded by us many years back. In this pattern, prices retest the earlier lows which look like alphabet “h” and that is why we have given the above name to the pattern. Below is the past of research taken from “The Financial Waves Short Term Update”.

Nifty daily chart:

(Part of research taken from Equity report dated 21^st August 2017)

Wave analysis:

“In Fridays trading session Nifty had Gap down opening at 9865 level and throughout the day selling pressure was witnessed towards 9780 level. By end of the day some pullback was witnessed which lead to closing Nifty closing near 9835 level. IT was the top most losing sector which lost more than 2%. Infosys closed down with loss of more than 9% on back of Mr. Sikka’s resignation.

On a weekly basis Nifty has made small bullish candlestick pattern after the bearish candlestick formed in last week. In current week prices have protected the prior week’s low of 9685 level, so as long as prices remain above this level weekly bias will remain sideways to positive.

As shown in daily chart, the sharp down move witnessed in last week has open up many possibilities. We expected the start of wave c of Triangle pattern however recent down move is suggesting that wave b might be still ongoing. In the past we have observed that “h shaped pattern” worked very well. So there are chances that prices retest the earlier low near 9685 level and post the same it can reverse on upside. Nevertheless as of now it is important to wait for development of pattern along with break of crucial support and resistance levels. 9685 and 9948 level is the broader range.

(60 mins chart is not shown here which is in original report)

As shown in 60 mins chart, prices have taken U turn from 9948 level however yet there is no such confirmation for start of next trend. Such kind of sharp rise followed by sharp fall can result into sideways action. Bollinger Bands works well during the consolidation. As of now prices are near to the lower band …..”

Nifty once again has arrived at the crucial juncture from where next sharp trend can emerge. To know the important reversal areas and Elliott wave pattern, get access to “The Financial Waves Short Term Update” which covers Nifty and 3 stocks on daily basis.

Is Nifty starting a bigger degree downtrend or is it still buy on dips?

Nifty showed a sharp move on downside from the highs of 10086 made last Friday. After many weeks there was a correction of nearly 100 points that too amidst all the optimism!

 So does it mean we are reversing? No, it is too soon to conclude this unless important support levels are taken out. But as we keep mentioning in our daily equity research reports it is time to stay alert and not complacent which has paid well so far.

Infact, many of the subscribers already knew about the triangle pattern even before it started to form which helped them to buy near supports and sell near resistance levels. But now we should start seeing a trending move soon.

You can also look at the concept of range bound trading strategy I discussed in my last Friday’s video – How to trade Nifty?

Now look at the below hourly chart of Nifty: (shown in morning research before markets opened)

Happened:

Following was mentioned on 9^th August before markets opened in our daily equity research report – The Financial Waves short term update

In short, looking at the faster retracement of last rising segment, break below Bollinger bands support and weakness in broader markets the chances are high of a trending move on downside. Nevertheless, just one day of move is too soon to conclude anything and so move below yesterday’s low near 9950 will further confirm negative outlook. We will stick with existing wave counts as long as 10085 is protected on upside. …… But so far prices have behaved exactly as expected and let see if selling pressure can start building up from here which will catch majority by a surprise! BANG ON!

Happened: Nifty moved precisely as expected and majority are still guessing what is leading this selloff. Prices have moved more than 150 points since we warned and 100 points post the support zone was broken.

So what is next from here? I do not see it buy on dips market but it is rather sell on rallies. Majority are stuck exactly at the wrong levels and selloff has been strong across the board. Avoid catching a low in this market.

“The Financial Waves short term update” is our flagship product that will provide important support and resistance levels, trading methods and charts on Nifty, Bank Nifty, stocks where there is opportunity. To Subscribe visit Pricing Page

In case you are occupied and do not have time to form trading strategy you can rely on our expertise for intraday and positional stock tips. Below are the few calls given over past few days:

In addition to above we have given the following calls since morning on which partial profits have been booked in just few hours itself:

Stock Tips given today so far ensuring more than 10000 profits and counting

DIVIS LAB FUT SELL CALL AT 632 GIVEN BOOK PART TP AT 628 AND TRAIL STOP TO COST

BAJAJ AUTO FUT SELL CALL GIVEN AT 2812 BOOK PART TP AT 2800 AND TRAIL STOP TO COST

CANARA BANK FUT SELL CALL GIVEN AT 338.80 BOOK PART TP AT 337.70 AND TRAIL STOP TO COST

Warning: However, understand this is a probabilistic game and stoploss has to be maintained at any cost to avoid major drawdown. There cannot be guarantee but we try to use systematic approach. You should risk only the amount that you are fine losing in case the methods do not work.

Independence offer: There is an opportunity to avail the above research at discount of upto 40% this Independence. To avail the offer simply visit Get 40% discount NOW on Stock Tips with free research reports.

For any queries or doubts visit Contact US or call us directly at +91 9920422202 or write to us at helpdesk@wavesstrategy.com

Is Nifty arrived at crucial juncture? How to trade using simple technical analysis?

Nifty showed a sharp move on downside from the highs of 10086 made last Friday. After many weeks there was a correction of nearly 100 points that too amidst all the optimism!

 So does it mean we are reversing? No, it is too soon to conclude this unless important support levels are taken out. But as we keep mentioning in our daily equity research reports it is time to stay alert and not complacent which has paid well so far.

Infact, many of the subscribers already knew about the triangle pattern even before it started to form which helped them to buy near supports and sell near resistance levels. But now we should start seeing a trending move soon.

You can also look at the concept of range bound trading strategy I discussed in my last Friday’s video – How to trade Nifty?

Now look at the below hourly chart of Nifty: (shown in morning research before markets opened)

We showed a probable triangle pattern which might be completing. So the closing of next two days become crucial to confirm the above wave counts. A few of the counts are purposely deleted as they are meant for paid subscribers. But nevertheless, if you use simple technique like Bollinger Bands and Channels you will know the bias as of now.

Nifty has now taken out the low marked as wave d and the next support is now at the low of wave b. If this level is also taken out decisively we might be headed for a reversal. So it is time to keep a close watch on crucial levels and the Elliott wave counts as it develop. Faster retracement of last rising segment is one of the most basic techniques in Neo wave that helps us to understand and catch a reversal early on!

“The Financial Waves short term update” is a daily research report published before market opens and it shows very detailed objective method for capturing the trend on Nifty, Bank Nifty and stocks on periodical basis. In today’s session, at one point of time Nifty gave more than 100 points of down move despite of all euphoria. It is time to be objective and alert! For subscription to this research simply visit Pricing Page.

In case you would like to receive Intraday / Positional stock tips based on above systematic approach to markets you can register for our daily advisory calls and get access to exact levels to enter with stoploss, targets and follow-up until the calls are closed. You will receive these calls via sms, Yahoo messenger, whats app. For any other details Contact US

How to trade Nifty post RBI policy announcement and rate cut?

RBI finally changed its status quo and cut repo rates by 25 bps. This time Mr. Patel has managed to be predictable.

It is interesting to see closing of Nifty post the monetary policy announcement. Prices traded in a narrow range for most part of the day until it finally gave away during the final 30 minutes.

The reason prices have been struggling at the current zone is due to the series of channel resistance all in the near zone.

Look at the below chart of Nifty which shows why prices have been failing at higher levels even though the overall tone is still bullish…

Nifty 60 minutes chart:

News or events do not drive the markets but only results into short term volatility or random movement which will last for few minutes to few hours or few days and then the original trend resumes.

The above chart clearly shows that RBI policy announcement did result into short term movement or volatility on intraday basis but prices eventually closed that the short term moving average support.

Now how to trade using Trendlines or channels?

Nifty is moving in the overall expanding pattern shown by blue trendline and within that it is moving in red channel. The reason markets are getting nervous at the higher levels is due to the upward sloping blue trendline. Also as this trendline is shifting higher the resistance will keep moving upside.

So, best trading strategy will be to buy when prices move towards the channel support and also RSI near the support zone. This technique will be valid as long as the short term red channel is intact.

So even if you do not use any other method but this basic technique you can trade profitably provided risk reward is favorable and the reason for trading is objective!

Now imagine the power when you combine these basic techniques with Elliott wave and other methods like Bollinger Bands, indicators and much more.

“The Financial waves short term update” is our flagship research report that shows trading strategy and detailed analysis using Elliott wave, cycles and indicators applied on Nifty and stocks. To subscribe visit Pricing Page.