Nifty - What to expect in 2018? Which stocks to Invest?

Year 2017 has ended with a strong gain so what can be Investment strategy in 2018? We at https://www.wavesstrategy.com believe that 2018 is going to be a volatile year with lot of activity. Visit the website for Stock Tips, Commodity Tips, Currency Tips. Contact us on +91 9920422202 or helpdesk@wavesstrategy.com

How to invest in Mutual Funds? – Power of Technical analysis

You might have come across application of Technical analysis – Elliott wave on Stocks, Commodities, Currency but we are extending this study to Mutual Funds and trust me it has worked out amazingly well.

There have been skeptics who reject any new methods or innovation without testing it. But we thoroughly believed in application of methods like Elliott wave and Technical analysis will work well on the NAV of the funds as the emotions that drives any stocks or index is similar which drives the NAV of the funds which is nothing but a index of basket of stocks

Many believe the components keep changing but it also changes for indices like Nifty as well. So if a method works so accurately on indices there is no reason why it will not work on Mutual Funds NAV.

Below is an astonishing proof that of how amazingly well Canara Robeco Emerging Equities performed as per our expectations. See it yourself –

Canara Robeco Emerging Equities Fund: Daily Chart Published on 1st Feb 2017

Happened: As of December 2017

Anticipated on 1st February 2017 in our Mutual Fund research report –

CanaraRobeco Emerging Equities is the best amongst the small cap & mid cap category and it is ranked 2nd by 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 Chemicals have been most favored sector for this fund as it is contributing 13.63% to the entire portfolio followed by Engineering & Capital Goods and Banking & Finance 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……….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.

Technical Perspective: The Daily chart of Canara Robeco Emerging Equities shows that wave 2 looks to be complete at the recent lows of 64 levels near the channel support and now wave 3 is in course. Also the 50 days EMA is continuously acting as support to the price which further indicates positivity in the trend. BANG ON!

Happened: This scheme indeed moved precisely as expected. The fund NAV rose from 64 to now at 94 levels in less than a year. That is a whopping return of more than 46% from February to December 2017.

The above simply highlights the power of Technical analysis that we use to advise our clients on Mutual Funds selection and Investments. You can now subscribe to our Mutual Funds weekly research report that has asset allocation to Nifty, Gold and Funds to be considered with detailed analysis. Subscribe NOW!

Do not know where to Invest Now? Contact US for more details

How to do trade stocks like DLF using channels, moving average, wave theory?

In Technical analysis, Channels, Moving averages and Elliott wave theory provide very good combination to identify the trend and trade setup.

Below is the research that shows how all of the above methods had been combined together to trade DLF. It is amazing to see at times when these methods work so precisely irrespective of the movement in broader markets.

The below research is picked up from “The Financial waves short term update” published on 21^st December 2017 morning.

DLF 60 mins chart: as per chart published on 26^th December 2017

Happened as of 26^th December

Following is a gist of the research published on 21^st December

Elliott Wave analysis:

Anticipated – “As shown in daily chart, (shown in actual research report to paid clients) we can see that prices are breaking above the upper blue trendline as well. And it is now moving in the modified black channel. The 20 period EMA is providing crucial support at 230 levels. From wave perspective we can see bigger degree wave z in matured stage.

As shown in hourly chart, the rise witnessed in DLF is sharp in nature indicating momentum is building on upside keeping bias positive. Prices have bounced back from its support trendline showing how well the channel techniques work. As long as support of 230 is maintained on downside one can use creating long position for move towards 255 levels.

In short, DLF trend is positive as long as 230 is intact for a move towards 255.”

Happened: DLF moved precisely as expected. Prices achieved the target of 255 and has now arrived near the channel resistance. So what is next from here?

Charting Tool: Plot your chart on DLF

The above research clearly highlights how one can use the methods of technical analysis and trade on stocks. Get detailed insight into the entire research as there are opportunities everyday depending on which stock is showing good pattern. “The Financial waves short term update” in our flagship research report containing Nifty, Bank Nifty and stocks using not only above but many more methods of forecasting. See yourself how this is helping our existing subscribers. Subscribe NOW!

How to trade Crypto currency like Bitcoin, Ripples?

Bitcoin and other crypto currency had been known to majority for obvious reasons. Prices have shown exponential rise over past few months but can we apply Elliott wave, Time cycles and other technical analysis on this newly discovered asset class?

The answer is yes, Look at the below chart of Ripple against USD i.e. XRPUSD and see yourself how amazing the Time cycles are working along with Elliott wave method and other technical indicators.

Ripple daily chart – XRP/USD

The above chart shows that this Crypto currency forms a low every 60 days. It has worked out amazingly well. Also the overall Elliott wave pattern suggests that prices might be moving higher in the form of wave 5 as of now but we have seen that in Crypto the 5^th wave are the biggest due to the on-going mania.

Please note the above chart is on log scale and not arithmetic. The ongoing wave 5 looks to be just breaking above the upper trendline and it will continue to be buy on dips as long as 0.700 level is protected.

So is it better to buy Bitcoin or Ripples?

You can now get access to our special Bitcoin research report to see how to trade Crypto currencies like Bitcoin, Ripple, IOTA and more…This is not to encourage trading in this asset as the movement is very volatile and risky. One should adopt prudent stoploss and have a trading strategy in place before entering this asset. For subscription to this research product Contact US or mail on helpdesk@wavesstrategy.com or call us at +91 9920422202

How to trade Copper precisely? Amazing application of Elliott wave!

MCX Copper had been moving precisely as expected and following Elliott wave along very well.

In below research you can clearly see how we have been able to capture the entire up move early on and the trend continued higher from the lows of 430 and now near 451 levels.

Below chart was shown in our commodity report – The Commodity waves short term update.

MCX Copper 60 mins Feb chart (shown on 14^th December)

Happened:

MCX Copper 60 mins Feb chart:

Waves Analysis:

On 13^th December morning we mentioned the following – In short, Copper is building momentum on upside. Use any dips towards 430 levels as buying opportunity for a move towards 440 or higher levels can be expected.

On 14^th December morning we mentioned the following – Over short term, as shown on hourly chart, Copper has broken out of the downward sloping channel and can now move towards 445 mark. The overall bias will be positive and any dips should be used as buying opportunity. In short, Copper trend remains positive as long as 430 is protected on downside. Move above 439 can take prices towards 445 levels which is 61.8% retracement of the entire fall.

On 19^th December morning we mentioned the following – prices are now near the upper end of the black channel and so buy on dips is ideal strategy in this commodity. Move towards 445 – 446 can be used as buying opportunity as long as 440 is intact. In short, Copper trend is positive as of now. Move towards 445 should be used to create long positions with strong support near 440 on downside.

On 20^th December morning we mentioned the following – Copper is positive as long as 444 is protected. Move below this level will result into sideways action. We can now expect a move towards 453 on upside. BANG ON!

Happened: Copper is currently trading at the highs of 451 on MCX and we have been bullish all the way up from 430 levels in just few days of time.

The above research highlights the power of Elliott wave applied on base metals like Copper. Subscribe now to “The Commodity waves short term update” and see how to trade Gold, Silver, Crude and Copper. You can also opt for receiving Commodity Tips for calls directly on your mobile or whatsapp. Subscribe NOW

Nifty, Bank Nifty- How to trade using 5 minutes chart on Intraday basis?

Both Nifty and Bank Nifty has been showing volatile movement ahead of Gujarat Assembly Election outcome. Another event was rate hike by FED on 13th December.

Amidst all this markets have been trading volatile and Nifty after showing correction during first half showed sharp recovery in second half of the session. So, is it possible to apply Elliott wave method on a chart as small as 5 minutes?

Nifty 5 minutes chart:

The above chart clearly shows power of Elliott wave applied on as small as 5 minutes chart

Nifty after forming a top in impulse pattern probably in form of wave a of Zigzag correction showed a corrective fall towards 61.8% level on downside. This fall was in complex pattern and prices retraced back the rise in slower time.

As per rule of Zigzag pattern wave (b) should not retrace more than 61.8% of wave (a). We can clearly see that the fall halted exactly at 61.8% retracement level from where there was a sharp rise on upside which is probably the ongoing wave (c).

We have applied similar techniques even on Bank Nifty chart and generated the following intraday calls for our Nifty, Bank Nifty and Equity subscribers

NIFTY FUT BUY ABOVE 10235 SL 10185 TGT1 10260 TGT2 10310

Happened: Nifty made a high at 10297

BANK NIFTY FUT BUY ABOVE 25110 SL 24970 TGT1 25175 TGT2 25320

Happened: Bank Nifty made a high at 25244

We also generated Option calls on both Nifty and Bank Nifty. Below is for reference

NIFTY 10100 CE BUY ABOVE 225 SL 190 TGT1 249 TGT2 279

Happened: Nifty 10100 CE made a high at 271

BANK NIFTY 25000 CE 28TH DEC BUY ABOVE 475 SL 370 TGT1 525 TGT2 624

Happened: Bank Nifty CE 25000 made a high at 528

The above clearly showcase the methods that we use in order to generate Intraday / Positional advisory for our subscribers!

So, will it work always, NO. Elliott wave and other technical methods of forecasting is all about probability. There have been occasions when techniques might not produce desired outcome and so using stoploss is extremely important.

Subscribe NOW to Intraday / Positional advisory and trade using the tools of high probability like Elliott wave, Fibonacci ratios. Also get access to free research reports along with subscription to Stock tips, Nifty tips, Commodity tips. So, how will market behave before assembly election outcome? Do not guess but use systematic method to forecast. Subscribe NOW!

Bitcoin – How to trade using Technical analysis?

How to trade Crypto Currency using Technical Analysis?

What is Crypto currency – Bitcoin? Will the buying mania continue? Or Will Bitcoin be responsible this time for the Global crises! Crypto currency is a new age, decentralised, digital currency which works on the mechanism of cryptography. Being decentralised it is not governed by one single monetary or legal authority – See astonishing charts and similarity between movement of Bitcoin and US – DJIA

Cryptocurrency is a new age, decentralised, digital currency which works on the mechanism of cryptography. Being decentralised it is not governed by one single monetary or legal authority. It works through a series of communicating nodes which runs bitcoin software and maintains the blockchain which is the public ledger recording bitcoin. Through mining, the record keeping system, miners keep the blockchain updated, consistent and unalterable. Miners use complex algorithms to mine (or “discover”) bitcoins which are then added to the blockchain. There are various other types of cryptocurrencies like Litecoin(LTC),Ethereum (ETH),Ripple(XRP) etc but Bitcoin remains the most used and traded.

Bitcoin is the first and the most famous cryptocurrency used till date. ……..Recently bitcoin trading has increased significantly, mainly because of the following reasons-

(please refer actual Monthly research report for more details)

See the below charts and you will be thrilled how highly correlated the movement has been between US major index – DJIA and Bitcoins

The above charts clearly highlight the Fractal Nature – It means that irrespective of the markets or assets the basic emotions that drive the prices remains the same. It is Greed, Hope, Fear that are responsible for movement of any asset class.

The above chart shows classical example that everyone is too focused only on Bitcoin but people are forgetting the fact that movement of US major index is mimicking that. The magnitude might be different but the slope of rise looks similar. There also seems to be high correlation between movements of both of these assets which is highlighted by black box.

The Bitcoin mania can be compared to that of the Tulip light bulb mania of 16^th century. Prices of Tulip ………………..

I am not here to catch a top in mania but definitely the risk does not justifies entering at current levels. It might very well move higher as measuring people extreme emotions like greed can be everyone’s guess but I think we are nearing that phase and the apocalyptic decline in Bitcoin might be a trigger for Global selloff this time. Food for thought – How will this be correlated to other assets! My take is when you run for cover you do not care what are you selling to save your …..!!!

There are missing text above. To get complete research on Bitcoin subscribe to the Monthly research report.

“The Financial Waves Monthly Update” is now published. Understanding what is Crypto currency- Bit coin. Nifty outlook with the application of Neo wave, Hurst’s Time cycles. Outlook on Banking Index. Sadbhav Engineering Long term pick. Dow Jones an uncontrollable bull trend. Mutual Fund Section Subscribe to “The Financial Waves Monthly update” and see yourself the long term forecasts and world markets at a glance.

Plot and see yourself chart of Bitcoin here