Nifty
has been moving with high volatility and gaps since past few sessions. It
becomes important to capture the trend from the low and ride it during such
times. While many traders turned bearish when the Index made a low near 10140
we have been expecting a reversal on the upside.
During
such volatility it becomes difficult to identify the right trend and ride it.
We have been successful in capturing the trend from 10480 with the help of
Elliott Wave and other indicators.
Below
is the chart we published in our daily report “The Financial Waves STU” which
shows how we captured this reversal.
Nifty60 mins chart:(Anticipated as on
15th October 2018)
Nifty60 mins chart: (Happened as on 15th
October 2018)
(Below is an extract of research published in
our daily research report published on 15th October 2018 morning)
Wave
analysis:
In the
previous trading session Nifty witnessed a gap up opening and prices moved
towards higher level throughout the session making a high near 10492. In the
past week prices witnessed a huge
movement within the range and we did not see any close below or above the range
10200-10480. During the last whole week we saw intense movement and Gapping
action. During such scenario it is very
important to know the crucial levels and understand the reversal areas. One has
to be very quick in changing stance from bearish to bullish during such fast
moving markets and not be one side of the trend.
The beaten
down stocks like DHFL, Yes Bank have managed to protect the important lows and
showed recovery which indicates buying emerging at lower levels and also short covering.
Also we are seeing positive divergence between Bank Nifty and Nifty Index as
Bank Nifty was leading the fall previously but it managed to protect the lows
even when Nifty formed fresh lows near 10138 levels.
On
the downside now an important support is near 10200 and prices have closed
above this low which indicates that we might have reversed on the upside.
Buying on dips strategy can adopted but looking at volatility the Index might
not provide much time and might show a strong move post which people will
relate the move to falling crude prices and appreciation of INR. Also if we
look at the RSI indicator we are seeing reversal exactly from the zone of 20
which was during the fall of 2017.
As shown on
hourly chart, Friday’s session was an important day and we are now near the
upper end of the range. Breakout above 10480 – 10500 will extend the up move
further. We are also showing ROC indicator on the hourly chart which is showing
positive divergence on the chart. Prices have completed wave e with the
completion of triangle pattern and now the next leg on the upside might be
starting. A close above 10480 one can expect follow up buying to emerge and
prices are expected to move towards 10750
which is 38.2% retracement of the prior fall.
Happened: The
Index moved as expected and made intraday high of near 10710 levels in today’s
session. A novice trader might think of missing the last 30 points but an
expert trader knows how to protect the profits of nearly 230 points on Nifty in
just over 2 days’ of time.
Post the sharp reversal on downside
from here what is next for Nifty?
You can get access to such
valuable research which is published in our daily report“The Financial Waves STU” wherein
we provide views on Nifty, Bank Nifty and stocks, So, where is the big trend about
to start – Get access here
In case you want direct calls on
whatsapp or sms for Equity, stocks, Nifty, Bank Nifty avail the Intraday
advisory – Register here
For first time in Ahmedabad – Attend the Most advanced Technical
analysis training – Elliott wave, Neo wave and Hurst’s Time cycles. Know more here
No comments:
Post a Comment