Thursday, May 23, 2019

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 08th May, 2019)


(Glimpse of Research taken from the Monthly report published on 8th 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 23rd 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?
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