#Nifty Diametric Neowave pattern, Ichimoku Cloud, Trade setup!

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Modi win, Nifty predicted it!

Nifty finally touched the psychological mark of 12000 and moved further higher to form another new lifetime high near 12041 levels but resisted there and we were sure of the halt. Read yourself how we were able to anticipate the move?

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

Nifty Daily chart: (Anticipated as on 08^th May, 2019)

(Glimpse of Research taken from the Monthly report published on 8^th May, 2019)

Anticipated: I strongly believe that it is going to be a majority this time again by Modi government and markets are already sensing that.

Extracting triangle pattern within wave (d): Looking at the current wave (d) internal structure there is high possibility that we are forming an Extracting triangle pattern. As per this pattern the rise gets smaller and the fall becomes bigger. This shows that wave c was smaller than wave a and now ongoing wave d is bigger than wave b. For this scenario to remain valid we should not see break below 11200 – 11250 levels. As of now wave d is 161.8% of wave b. Move below 11200 will indicate that an important pattern is completed near the highs of 11789 on 2nd May 2019 in the form of truncation and now we are moving lower as the first leg on downside. Next two to three days of movement will be crucial. Failure to see any arresting behavior from here will be a sign of concern and will suggest a top is in place for rest of 2019!!!

In a nutshell, On Election Day there is high possibility of Modi sarkar back in the power and Nifty might show a spike on the upside. For these scenarios to remain valid the lows near 11250 - 11200 should remain protected and weakness below these levels might result into serious capitulation before the election results are announced. It is time to trade less for the rise in volatility and leverage to sensible level to avoid the capital erosion. Markets can move very fast in flash of seconds without giving much time to react and it is best to put pre-defined orders with stoploss in system to avoid taking impulsive decisions and at the same time maintaining the objectivity. Interesting weeks ahead and trade cautiously. Post the result announcement there can be very good trade setup but yes that will be no longer for buy on dips but sell on rallies!

Nifty Daily chart: (Happened as on 23^rd May, 2019)

Happened: We witnessed exactly what was mentioned in the monthly report & on the result day i.e. today Nifty Index witnessed a huge gap up opening and moved higher to form a new high. The black channel has been working extremely well and just as expected bounced from its support near 11150 making a move towards the channel resistance near 12041 and stalled there. We clearly mentioned in our monthly report that we might see Nifty to flirt near 11856 levels post which prices could possibly reverse. Now What next?

Subscribe to our Daily equity research report which includes Nifty and three other stocks with detailed Elliott wave analysis and know what the next move would be on a daily basis before market opens. Get access here

Get access now to the monthly research report– The Financial Waves Monthly update and see yourself the detailed analysis and where is the current move going to fizzle out. Check here

Nifty, Bank Nifty and broader indices all are now at very important juncture. We have come out with exclusive offers for someone wanting to subscribe the complete package of research. You cannot miss this opportunity that too at such crucial juncture… See the latest Summer offers this May here

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Momentum Call - IBULL up by 15% in 1 day! BANG ON

A different BULL as the name itself suggests. This stock is up by more than 15% in today's session and again this is no surprise to us. We generated momentum call on Friday to go long on IBULL Housing Finance for a target of more than 10% and it has been achieved in less than a day. Again, Believe it? Here is the proof continue reading below-

Below is the detailed analysis of the research published under the name- “The Financial Waves Momentum Update.”

India bulls Housing Finance 60 mins chart: (Anticipated as on May 17, 2019)

India bulls Housing Finance 60 mins chart:(Happened as on May 20, 2019)

 

(Following research is taken from Momentum report published on 17th of May, 2019)

Momentum stock recommendation:India bulls Housing Finance

Buy Price – Buy above 728

Time Horizon –Not Applicable

Investment – 5% of capital

Target price –801

Stop loss–685

Partial Profit levels- 764

*Trail stop to cost after booking partial profits to ensure capital protection*

 Refer detailed research below

Anticipated as on May 17, 2019: As shown on the daily chart, since the month of October 2018, the stock has been moving in an overlapping manner over a broader range of 880-650 levels and recently it bounced exactly from its lower range indicating a positive bias for the stock. As per the wave theory, we are currently moving in the form of wave (b) on the upside.

As shown on the hourly charts, the ongoing wave (b) looks to be forming a Diametric pattern within which wave f completed near the low of 650 levels and wave g looks to have begun on the upside. As per the Diametric guideline, wave g tends to move in equality with wave a and hence we have shown Fibonacci extension of wave a for wave g. We can expect the prices to move atleast towards 50% extension level which comes to 764 levels.

It is advisable to book partial profits at 764 levels which come to 50% projection of wave a for wave g and trail the remaining to cost to protect the capital.

In a nutshell, trend for Ibulhsgfin looks positive and can provide good trading opportunity over short term. A move towards 764 (partial profit) followed by 801 (target) is expected over coming sessions. It is advised to use strict stop of 685 just in case a sudden reversal is witnessed.

Happened as on May 20, 2019: In today’s session prices post hitting a low near 740 levels began its rally for the target of 801 and further exceeded it to make a high near 825 levels.

Nifty opened up by nearly 250 points near 11650 on back of Exit polls that it is going to be MODI AGAIN! I have been bullish on this and had been mentioning in our daily equity and monthly research published on 8th May 2019 that it is going to be MODI again and with a clear majority as markets were already discounting it.

Now the above was predicted using Neo wave analysis and not paying heed to news. Exit polls only predicting what the markets were already communicating much earlier. Still cannot digest this that it was predictable? Get access to the monthly report where we mentioned a low near 11100 - 11150 and mentioned MODI again this time. You can see the report here

You can now avail multiple offers and leverage on the above research in the cost of just one. Get momentum and multibagger at the cost of 1 under Combo Summer Special. Seeall the offers here

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Why Nifty collapsed and how to trade next week?

Nifty has shown a strong selloff in just 3 to 4 days of time.

The level of 11550 was very important which was the low of multiple cycle. When multiple cycle lows are broken in a rush it indicates that a very important top is formed probably for the year.

Yes, it is a bold statement but looks very probable. 23^rd May will be an important day but I think it will be Modi government again this time without much hurdle. This might result into an upward spike but that will be only temporary.

Nifty broke 11550 levels, Is a top in place?

Nifty had a sharp fall over past two days and prices have decisively broken below the low of 11550 levels. This is the same level which had been protected for many weeks and the same level will now act as a strong resistance as per polarity reversal.

By breaking this level of 11550 there is a very important indication. It is not often to see break of the important supports during a pre-election rally. Secondly, this level also marked the low of time cycle of 55 days which we have been using for many years. By breaking a time cycle low there is an indication that a bigger cycle has turned on the downside and therefore the high at 11856 might remain protected for the rest of 2019. Yes, this is a bold statement but the cycles are indicating that. The only apprehension to this is the event outcome on 23^rd May which might result into whipsaw of 11856 or higher towards 12000 but that should be it!!!

Nifty daily chart:

The above chart clearly shows that the cycle has worked well as long as the low had been protected. Only during expanding patterns the cycle fails. So, as the low of the cycle at 11550 is broken there is a high possibility that the top made at 11856 will remain protected.

The election outcome might result into a spike move on upside and markets seems to be discounting it will be Modi sarkar again. This might trigger a positive spike but that will also be temporary and the downtrend will eventually resume.

So, how to trade when we now know the path based on objective Elliott wave method. It is not easy ride till 23^rd and using strict stoploss is important as volatility is only going to increase. Does it make sense to short at current levels when RSI is oversold? What should be the trading strategy?

Get access to “The Financial Waves short term update” and see the trend for Nifty and how it will play out in short term with detailed Elliott wave counts and patterns. Subscribe here