Nifty
had been moving precisely as expected and this time as well we are spot on in
identifying the turn and cautioning near 11000 mark. The Global market selloff
had been strong with DJIA (US) crashing, followed by Crude crashing, now
spreading across to Nikkei 225 (Japan). This looks to be a repeat of 2008 where
there was nowhere else to run for cover. Few months back when crypto currency
were the darling among traders we warned that a crash in this asset class will
be a warning sign that money has started moving out of riskier assets. This was
clearly stated in our monthly research report. The entire global phenomenon has
been playing out exactly like that and now the weakness has been spreading
across. DJIA has shown one of the biggest losing streaks in years with heavy
volumes when many are still trying to unearth the news revolving around the
selloff. I wish markets worked on news or events making money would have been
much easier. But freely traded markets follow patterns that are predictable in
the form of Elliott wave and Time cycles. This has helped us to capture the
swings each time precisely at the tops and lows. This time as well markets have
continued to correct when we warned strongly near 10900 –
10970 mark.
Now
look at the below charts of Nifty published on 7th December 2018 in
the daily equity research report
Nifty daily chart– Anticipated on 7th December 2018
Anticipated on 7th December 2018 in “The Financial Waves Monthly update”
“Nifty can move as per the path shown in figure 4. Prices are now in short term downtrend and break above the resistance of 10740 levels
might result into retest of recent high near 10940 or higher in the zone of
11000. This is not necessary and it
is best to look for shorting opportunity as we approach near the resistance
levels. However, next few days of price action is very crucial. In case of
sharp decline below …… the bigger degree correction will
resume below ……….
One should be prepared for increase in volatility with state
election outcome due over next few days as markets are already in corrective
phase which is normally associated with high volatility.” BANG ON!
Happened: Nifty moved precisely as expected and
showed a pullback post 7th December. Despite BJP losing the state
election and RBI governor resigning suddenly markets closed positive that day
just to move as per the path shown in monthly report. Nifty touched intraday
high of 10985 on 19th December 2018 and then reversed back sharply
lower. Again precisely as per the path shown. So, think if events drive the
prices then how can markets follow the path shown so precisely and accurately.
It
is the Elliott wave patterns that help us to forecast the trend along with Time
cycles. In our morning research report – The Financial Waves short term update
we cautioned exactly at 10900 – 10970 zone and break below 10880
followed by 10820 strongly confirmed the reversal. Nifty touched intraday low
near 10534 in today’s session which is already a move of
around 300 to 350 points post the break of support. For building fresh shorts
it is better to wait for pullback and existing shorts are riding the trend with
well in the money trades.
We
are in alignment with majority of indicators and Time cycles. It is not very
often to get such high predictable trade setups. You can know the next big
trend for Nifty in the daily and monthly research report.
Get
access now to the daily equity report – The
Financial Waves short term update on an annual basis and receive
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