Nifty: Power of Fibonacci and pattern! BANG ON!

Nifty showed a move of more than 140 points in today’s session on the upside. This might be a shocker for the shorts but we have been mentioning the importance of a channel that has worked out brilliantly in the past on more than 4 occasions.

Below is the hourly chart of Nifty that was published today morning before equity markets opened. We mentioned the important support zone near 9950 levels which was also 61.8% projection of the wave a on downside.

Latest webinar: Will Nifty form a low or will it crash?

Nifty 60 mins chart (showed on morning of 26th March before markets opened)

Happened:

Wave analysis:

Following was mentioned in morning research – The Financial Waves short term update

…The overall selling pressure seen now is due to the weak Global markets. US major index DJIA is down another 424 points. This can result into weak opening but closing is going to be crucial.

It is not only Nifty but many individual stocks are also arriving near the lower trendline support. It is rare to see lower trendline getting broken on downside and when that happens real panic kicks in. So it is very important for bulls to protect the lower trendline support on closing basis… As shown on hourly chart, prices are moving lower in the form of minute wave c of minor wave g of Diametric pattern. Friday’s low near 9950 is also where wave g = 61.8% * wave a. So today’s closing is important.

Existing shorts should book partial profits as prices are approaching cluster of support zone and trail remaining to ride the ongoing down move but with a strict stoploss in case there is a sudden reversal.

…We have seen break below all the major supports so far but this is the level near lower trendline from where we have seen bounce back on more than 4 occasions in recent past. Let us see if it works again this time or not!

 Happened: Nifty moved precisely as expected and prices reversed back from the important Fibonacci projection and trendline support. This simply shows power of Elliott wave, Neo wave, Channels and Fibonacci.

In case you missed my latest webinar where I talked about me turning bearish near 11000 levels and now turning bullish near 10000 mark! Here you can watch it – Elliott wave channel.

Subscribe now to “The Financial Waves short term update” and see yourself how to trade from here on Nifty, Stocks, Bank Nifty and why we were cautioning the shorts when majority turned bearish below 10000 levels. Also we have been able to provide long calls on Nifty, Bank Nifty, stocks to our subscribers right at the bottom when only a few would have dared about it! Get access to Intraday / Positional advisory and get research reports free along with it. Subscribe here

Will Nifty form a low or will it crash?

I am sure majority are getting anxious now when Nifty is moving below 10,000 levels. When it was near 11000 I came out strong and bold and talked about an impending down move. 

Now when Nifty is breaking below 10000, majority are turning bearish when the momentum on downside is reducing. See below my view on Nifty for coming week: 

In case you have not seen my video on 2nd February which was post Budget, you can see why I was bearish then in the below video. Below video was published on 2nd February 2018

Subscribe to daily Equity research report – The Financial Waves short term update and see detailed Elliott wave / Neo wave counts on Nifty, Stocks, Bank Nifty – Visit here 

For Intraday / Positional calls on Nifty, Bank Nifty and stocks visit here

How to trade Nifty in coming week using Technical Analysis

Which pattern Nifty is forming using Elliott wave.Applying Technical indicators on chart.Visit https://www.wavesstrategy.com and see yourself different Technical indicators applied on charts of #Nifty, #BankNifty, #Stocks

Nifty: Power of Time cycles & TRIN indicator!

Hurst’s Time cycles has worked amazingly well yet again. We have also applied TRIN indicator in the morning research report on Nifty charts.

See below how to apply various technical indicators on charts along with advanced concepts of pattern recognition using Advanced Elliott wave, Neo wave, Time cycles and TRIN indicator.

Many say it is better to keep it simple but that will work when markets are not complex. Also we have proven track record to catch major tops and bottoms which we did by anticipating a top near 11000 mark and a low near 10200 levels! Yes, below is the proof!

Below chart of Nifty was published on 12th March morning before equity markets opened

Nifty 60 mins chart: Anticipated on 12th March 2018

Nifty 60 mins chart:

Anticipated on 12th March morning research report – The Financial Waves short term update

“On 8th March, Nifty had acted exactly the same as we mentioned regarding the positive reversal in our February report as per Hurst’s time cycle. So, there is high possibility that the low made at 10140 will remain protected atleast over next few days or weeks which will be against majority expectations. We turned bearish near 11000 mark when everyone was bullish and now it is time to again take a contrarian stand. A break above 10350 levels followed by 10400 levels could indicate a potential uptrend is starting.

As shown on hourly chart, our contention that an Expanding triangle is forming has been validated as of now since prices took strong support near the a-c trendline. Now faster retracement back above 10400 will indicate that wave e of this triangle is probably over and the short term low is formed.” BANG ON!

Nifty moved precisely as expected. Prices formed a low and reversed exactly as expected. So what is next from here? In today’s morning research we published another important indicator – TRIN…

The Arms Index (TRIN)

TRIN was invented by Richard W. It is an indicator used by technical analyst to predict price movements based on advances and declines with respect to their volume. It is calculated by dividing advance to decline ratio by advance to decline volume ratio.

We are showing TRIN indicator that measures the overbought and oversold conditions by involving price and volume. When the TRIN line is near the highs it is assumed to be in oversold state as lot of volumes has gone on the short side. So it works opposite to indicators like RSI where the oversold state on downside. Also if you observe carefully most of the times this indicator has inverse correlation with that of prices. We can now see some extreme reading here which was not visible for entire year thereby indicating a strong oversold state. This has happened because there had been more declining stocks even yesterday than advancing. We can expect this to reverse thereby supporting index to move further higher from here on.

As shown on hourly chart, our apprehension that the fall below 10276 is a bear trap had been vindicated and we can clearly see how important it is to stay objective despite of all the pessimism that was across when Nifty broke below this level. We were bearish near 11000 when everyone was super bullish and now we turned bullish when majority expected break below 10000. The major reason was Time cycles and the internal Neo wave pattern. Prices indeed formed an ……….

In short, …………..

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Hindalco: How to trade metal stocks using Moving averages, Wave theory?

Nifty has been trading with high volatility with index cracking below previous lows after having a Gap up opening. During such times it is bests to buy the outperformers and short the underperformers.

We use Elliott wave theory along with other technical indicators like Moving averages and Channels to understand the overall maturity of the trend.

Below is the chart of Hindalco along with trading strategy which was published in daily research report – The Financial Waves short term update

Hindalco 60 mins chart: Anticipated in morning on 6^th March 2018

Happened:

Wave analysis: In today’s morning research report we mentioned the following:

Metal stocks were under pressure yesterday after the protectionism stand taken by US President Trump for basic material resources. This sends across nervous signs for metal exporting companies as their entry is discouraged in US.

As shown in daily chart of Hindalco, (shown in actual research report)

                    

As shown in 60 mins chart, prices are moving in the downward sloping red channel. s of now wave (b) is completed on upside and wave (c) is ongoing. We can expect the downtrend to continue as long as the upper trendline is protected. “Since prices are near its support trendline any pullback towards 236 levels can be used as a shorting opportunity for a move towards 225.” BANG ON!

In short, trend for Hindalco remains bearish. It is ideal to use pullback to create short position for a move towards 225.

Happened: Hindalco moved precisely as expected. Prices showed a temporary pullback toward 225 – 226 zone and made a low of 224.15 in today’s session itself. This clearly shows how combining basic technical analysis can be used along with Elliott wave can help in trading.

Based on above methods we generated few intraday calls for our Intraday traders subscribed for Stock Tips. See even when the markets went down sharply all the calls went in favor:

BAJFINANCE FUT BUY ABOVE 1659.1 SL 1651.1 TGT1 1663.9 TGT2 1671.9 – Target2 achieved

GODREJCP FUT BUY ABOVE 1094.5 SL 1089.5 TGT1 1097.5 TGT2 1102.5 – Target2 achieved

CHOLAFIN FUT BUY ABOVE 1467.75 SL 1460.75 TGT1 1472.55 TGT2 1478.95 – Booked parttp at 1471.70

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Get access to daily research report “The Financial Waves short term update” and see what is next for Nifty along with stocks like Hindalco and much more.. Visit Pricing page here

Nifty path ahead and key levels to watch in coming week?

In this webinar you can see various technical analysis methods I use personally to derive trades on #Nifty and #stocks. So what is next from here? Visit https://www.wavesstrategy.com and get access to latest research reports, #charts, #stocks and #commoditytips