Nifty: How Ichimoku Cloud can be combined with wave theory for forecasting?

Elliott wave, Neo wave are powerful techniques to forecast the markets. However, during complex market conditions it becomes important to combine this with trend following methods like Ichimoku Cloud that can provide exact entry level to capture the big trend.

Look at the below chart of Nifty plotted along with Elliott wave and how one can form a trend following system combining these methods together.

You can also watch my latest webinar on Nifty here – Power of Ichimoku Cloud

Nifty daily chart:

The above chart shows the Ichimoku Cloud plotted along with Elliott wave on a daily scale. For the first timer who is not used to looking at so many plots on a single chart might think it to be very complex. But by understanding each and every plot systematically might provide an easy way to look at the entire trend.

In the above chart if you look at the big fall from 11700 to the low of 10000 the blue line (also known as conversion line) worked extremely well. Whenever prices touched this line and reversed back on downside it provided the first indication that the downtrend is resuming. One has to go on a lower time frame for further confirmation of the trade setup.

On contrary, in the pullback currently ongoing in form of wave b (blue) we have seen prices respecting the red line (also known as base line) and did not close below it for more than two consecutive days. Everytime prices reversed back on upside. With today’s price action prices have again moved below the red line with first negative close. Now it is going to provide a trade setup if we see two consecutive closes below this line. Also one can now look at the shorter time frame to enter the trade provided one looks at the internal structure of Elliott wave pattern.

The above just shows how one indicator itself can provide very important information to derive the trade and when combined with Elliott wave – Neo wave pattern it becomes all the more powerful.

Nifty has now broken below the first line of defence near 10692 and now the second important support level if taken out will confirm the bigger degree down move has started. So, this is time to be alert and be watchful on this second level which is mentioned in the daily equity research report – The Financial Waves short term update. Get access here

We will not be able to explain the indicator in detail here but in the upcoming training on Elliott – Neo wave, Time cycles and Ichimoku Cloud these techniques will be covered in much detail and depth. To become an expert trader - you can register now for the same, Limited seats Avail early bird offer – Most Advanced Technicalanalysis training

Kajaria Ceramics: 10% in 16 trading sessions, Amazing momentum!

Nifty Index has been moving in a range and the move we are witnessing sustains only for a single day. Markets are testing patience even of the expert traders and during such times it becomes important to identify stocks that have the potential to give returns even during such range-bound markets. We are seeing rotational and news driven moves in stocks. The movement has been skewed and limited only to specific stocks it therefore becomes important to identify and bet on the stocks that have the potential to show returns.

Kajaria ceramics from the momentum research went amazingly well during such market scenario and gave a return of more than 10% that too in just 16 trading days. Check the below research from that research report.

Below is the chart showing detailed analysis published in our research report -“The Financial Waves Momentum Update”

Kajaria Ceramics 60 mins chart: (Anticipated as on 26^th December 2018)

Kajaria Ceramics 60 mins chart: (Happened as on 22^nd January 2019)

Following research is taken from Momentum report published on 26th of December 2018.

Buy Price – Buy above 496

Time Horizon – Not Applicable

Investment – 5% of capital

Target price – 549

Stop loss – 463

Partial Profit levels- 515

Wave analysis: Published on 26^th December 2018

Kajaria Ceramics after forming an important low 310 showed strong bounce back and has managed to break above the multi-month channel resistance. This indicates that the complex correction pattern is over at the lows and we have started seeing pullback on upside of the entire fall. 20 days EMA is also providing strong support to prices.

As shown on hourly chart, prices are moving higher in the form of wave (iii) and move above the high of 496 can intensify the buying pressure in this stock. For these counts to remain valid we should not see overlap of ongoing leg with minor wave i which is at 463 levels and so the same will act as a good stop. Any overlap here will suggest wave (ii) is not yet over. We can expect a target of 549 which is near the channel resistance.

One should keep looking at booking partial profits to ensure the capital remains protected and trail the stop to cost for remaining positions. So, use move towards 515 for booking partial profits.

In short, overall trend for Kajaria is positive and eventually the stock can move towards 549 on upside which is the channel resistance. Break above 496 can be used to initiate long positions with 463 as strict stoploss.

Happened: Prices moved precisely as expected and showed a whopping gain of more than 10% in the form of wave (iii). This shows the power of Impulsive pattern. The stock made a high near 554.65 and achieved our target. The stock showed amazing returns in just 16 trading sessions.

The above research clearly shows how one can capitalize the study of Elliott wave and ride the ongoing trend. To know more about our next pick  and to ride the trend in outperforming stocks you can get access to our report named “The Financial Waves Momentum Update”- Get access now

Also learn the above techniques and equip yourself with the necessary tools that can give you the power of forecasting right from few minutes to long term investments. Know more here

Stock trading strategy helped me win CNBC TV18 Bull’s Eye trade show AGAIN!

The  market scenario had been very tricky in the previous week due the range-bound price action that the Index was witnessing. Nifty failed to show any momentum and was simply moving within the range of 10870-10700 for the entire week. However, I managed to win the trade show against other market veteran.

Looking at the overall structure there were certain stocks that have been out performing within the Mid-cap and the small-cap space and the frontline stocks that were moving higher are just drifting towards lower levels with no strong trend.

It feels great to win the Trade show despite of the range bound movement. Below are a few trades taken during the week with clear explanation

7^th January 2019 trades:  Stock tips – Buy: Aartiind, PNB, Coromandel , Fedbk

Nifty overall had been in range on Monday and was near the lower end of the range there was less momentum on the downside so all the stocks which were selected were in buy. The stocks which were selected were about to give a break of its past week’s range and were amongst the ourperformers.

8th January 2019 trades- Buy: Repco Home, Ajanta Pharma, BEML, Godrej Properties.

Nifty had a negative closing on the previous day however was in range overall and the strength still looked on the upside. Due to the sector rotation the key was to find out the outperforming sectors and the stocks within those sectors. Real estate and fiancé sector showed good buying so Repco homes and Godrej properties were the picks among and Pharma sector also showed buying emerging.

9th January trades 2019- Buy: Allahabad Bank, IOL Chemicals, Praj Industries, Repco

Nifty had a strong positive start with a gap however the overall trend was range-bound so the strategy still remained to pick out the stocks and the sectors that were outperforming. Sugar and chemical showed some buying emerging so we selected Praj Industries and IOL chemcials. Praj Industries was the stock that performed very well on the that day and I selected it because it was about to start the 3^rd wave on upside and also made time cycle lows.

10th January trades 2019- Buy: Bata, Nocil; short: NMDC, Chennai Petro.

Nifty in the previous session had a negative close and was near the upper end of the range however the momentum on the downside was not strong. So I thought it was better to play safe. This was the reason I selected two stocks which were Nocil and Bata for buy. Both of the stocks showed outperformance and were trading near 52 weeks high and the chemical sector showed good buying. The metal sector on the other hand showed weakness and therefore I decided to go short on the sectors that exhibited weakness overall. Chennai Petro also broke past 10 days of low with a big bearish candle that indicated completion of wave b on upside and start of wave c lower.

11th January trades 2019- Buy: Aarti Ind, Divis Lab, Astrazeneca  , Manappuram Finance.

As mentioned above the Finance and the Pharma sector showed good buying in the whole week. Manappuram Finance was had been protecting the low of previous day for almost 8 days and Astrazenca found strong support near 61.8% retracement level and showed strong positive reversal.

The above strategy clearly highlights the fact that knowing the internal Elliott wave pattern of individual stocks along with Nifty direction is extremely important. It is not necessary that you will make money by simply being long on any stocks in the current market. Stock selection based on Moving averages, Channels, Elliott Wave, RSI indicator and much more is required.

Learn the detailed process of Stock selection, Portfolio creation, Intraday trade setups using above methods. The above is a proof of how brilliantly the techniques work. I will be discussing in detail all of these methods – how to buy and sell intraday, how to create portfolio of stocks for investments using Neo wave, Time cycles, Ichimoku Cloud. For more details about the upcoming training click here

Do you want to create a portfolio of multi-bagger stocks from 1 to 2 years’ time horizon? This is the right time to keep buying stocks that has potential to increase multifold. I can personally help you create portfolio of stocks that can be next multibagger. Contact us here moredetails.

Kajaria Ceramics: capturing a move of 5% in 5 days!

Kajaria Ceramics showed amazing rise and gave nearly 5% return in just 3 trading sessions after breakout and in 5 sessions after getting initiated. For intraday trader this might look like a small gain but trust me in current market when you can play a bit safe and generate more than 5% return in just 3 to 5 trading sessions is a great work.

We have been publishing this type of stocks in our momentum research reports and based on Elliott wave counts have been recommending trade setup, entry level, partial profits, targets and ofcourse stoploss.

Below is the chart showing detailed analysis published in our research report -“The Financial Waves Momentum Update”

Kajaria Ceramics 60 mins chart: (Anticipated as on 26^th December 2018)

Kajaria Ceramics 60 mins chart: (Happened as on 8^th January 2019)

Following research is taken from Momentum report published on 26th of December 2018.

Buy Price – Buy above 496

Time Horizon – Not Applicable

Investment – 5% of capital

Target price – (given in actual research)

Stop loss – ???

Partial Profit levels- 515

Wave analysis:

Kajaria Ceramics after forming an important low 310 showed strong bounce back and has managed to break above the multi-month channel resistance. This indicates that the complex correction pattern is over at the lows and we have started seeing pullback on upside of the entire fall. 20 days EMA is also providing strong support to prices.

As shown on hourly chart, prices are moving higher in the form of wave (iii) and move above the high of 496 can intensify the buying pressure in this stock. For these counts to remain valid we should not see overlap of ongoing leg with minor wave i which is at … levels and so the same will act as a good stop. Any overlap here will suggest wave (ii) is not yet over. We can expect a target of ………...

One should keep looking at booking partial profits to ensure the capital remains protected and trail the stop to cost for remaining positions. So, use move towards 515 for booking partial profits. BANG ON!!

Happened: Prices moved in line with our expectation. Kajaria Ceramics gave a break above its resistance on 496 levels and surged towards higher levels of 515 followed by 520.55 levels. This stock managed to give a move of more than 5% in just 5 trading days after getting initiated and in just 3 days after the breakout happened.

The above research clearly shows how one can capitalize the study of Elliott wave and ride the ongoing trend. We are coming up with another momentum stock today. Don’t miss it. Subscribe here now and keep riding the trend in outperforming stocks!

Tata Steel: under strong hold of Bears!

Overall metal sector is witnessing selling pressure and most of the metal stocks are in red and some are near its 52 weeks low. Tata Steel has been moving in lack luster manner from past 4 consecutive months. Even in previous trading session this stock witnessed a steep selling.

Below is the chart showing detail analysis on Tata Steel and how we turned bearish on this stock using Elliot wave theory combined with Moving averages and Channels.

Tata Steel 60 mins chart:(Anticipated as on 28^th December, 2018)

Tata Steel 60 mins chart:(Happened as on 03^rd January, 2019)

 Elliott Wave analysis: 

Anticipated:

As shown on daily chart, wave z is ongoing on downside. Prices are testing its 30-days EMA and have failed to take out on closing basis. An important resistance is now placed near 535 levels only break above this on closing basis can provide opportunity for creating long positions till then one should avoid catching a low.

As shown on the hourly chart, prices are moving within the downward slopping red channel which is intact since past 3 months. Wave (c) has completed on downside and as of now wave b of (x) is ongoing. Break below 500 can retest the low of wave (c) i.e. 485 levels.

In short,one should keep a close watch on 535 on upside and 500 on downside to initiate fresh trade. Move below this level will take prices towards 485 over short term.BANG ON!!

Happened: Tata Steel, has failed to show any sign of positive reversal. Further weakening in domestic market added to its vulnerability and prices made 52 weeks low near 481.20 levels.At times it is best to avoid catching low and using any pullback as shorting opportunity.

The above analysis clearly shows how well this technique works. Get access to our “The Financial Waves short term update” is daily equity research report covering Nifty and 3 stocks providing detailed analysis using Elliott wave and other technical analysis methods. Subscribe here