Today, RBI announced rate cut of 25 bps but Nifty and Bank
Nifty has continued to be under pressure despite of the easing interest rates
scenarios.
In the morning equity research report itself we mentioned
that “As per my observation, on past 2
concluding MPC meet irrespective of rates cut markets have always reacted
negatively to it. Even this time although there are clear speculations of
another rate cut of 25 bps but despite that being the case we will not be
surprised to see if market closes negative today”
This
clearly shows that equity markets are not necessarily driven by interest rates.
Many would argue the default by DHFL has led to the selloff and majority keep
searching the logical news that is driving the prices. But for a trader news
does not matter. The most important thing that has to be looked at is the price
pattern and Elliott wave structure.
The below
chart is picked up from “The Financial
Waves short term update”
Nifty hourly chart:
In the above chart simply look at the blue channel. It has
been working amazingly well and everytime prices moved towards this channel it
started giving away. The internal Elliott wave – Neo wave pattern also looks
very clear and it is time that if the support levels are decisively taken out
we will see fresh set of selling kicking in that will result into chaotic
selloff. The Diametric pattern on
the upside is on verge of completion and today’s closing will be very crucial.
It is time to be ready for embracing the next big move and
traders can take advantage of this move once the support levels are taken out.
So, get ready for another big move and for the exact trade
setup you can refer the daily equity research – The Financial Waves short term
update or subscribe to the Intraday calls advisory. See the details here
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