HDFC Bank 53 Days Time Cycle, Time to Buy?

Time Cycle helps to understand if the overall trend is going to reverse back on upside. This is advanced technical analysis method is used for timing the market.

HDFC Bank is following 53 days Time cycle very well and we can clearly see that prices are forming low every time it approaches near to this cycle.

HDFC Bank Daily chart 

On the above chart, the red vertical lines represent 53 days’ cycle. As shown in above chart, we can see most of the lows are formed on our cycle and after almost every 53 period, HDFC Bank has shown a positive reversal.  The same is now in place again near 1378 levels. So, the time is right for stock to start showing positive trend. However, price action is must to confirm the same and for that we need a close above 1475 levels. A close above it can suggest that short term bottom has formed. 

For trading it is important to combine Price and Time studies together.

Time is right and now if price action confirms HDFC Bank can provide good opportunity to enter for a move towards 1515 levels followed by 1595 levels.

In a nutshell, Elliott wave and Time cycle combination carries forecasting ability and one can trade exceptionally well by understanding these methods. HDFC Bank is now at important juncture and can provide good trending opportunity. 

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BORORENEW: How to capture 15% move using simple technical tools

We used these 2 indicators on BORORENEW and were able to capture a 15% move in just 3 days. You can also use these to identify stocks with momentum for short-term trades.

We published BORORENEW analysis in "TheFinancial Waves Short Term Update" on 24th January 2024 which our subscribers receive pre-market every day. Check out below the detailed research report that we published.

BORORENEW Weekly chart Anticipated as on 24^th January 2024

BORORENEW Daily chart Happened as on 30^th January 2024 

 

Wave analysis as on 24^th January 2024

BORORENEW has been moving higher recently and intact in strong uptrend. In the previous session it closed with a massive gain of 11.59%.

On the weekly chart, in the previous session prices formed a bullish candle. A double bottom pattern is a classic technical analysis charting formation that represents a major change in trend and a momentum reversal from a prior down move in market trading. We have applied parabolic SAR which used to determine the price direction as well as draw attention to when the price direction is changing. A series of dots placed below the price which is deemed to be a bullish signal.

In short, trend for this stock is positive. Use dips towards 555-560 as a buying opportunity for a move towards 620 levels as long as 535 holds on the downside.

Happened

Stock continued to move higher from the opening candle itself and made a high of 643 that is 15% up from above mentioned levels. Formation of double bottom pattern on the Weekly chart and increase in volumes gave us a double confirmation of the breakout. In such volatile session price has managed to give 15% returns in just 3 days.

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Trading using Elliott – Neo Wave with Lunar Cycle

Trading using Elliott wave along with Lunar cycle for understanding the path ahead of Nifty.

Nifty has been moving with violent swings on either side trapping both bears and bulls.

Let us look at the Lunar cycle and understand the overall impact on markets with moon phases.

Nifty daily chart – Lunar cycle

Nifty Neo wave pattern 

Nifty first chart is showing Lunar cycle – both Full moon (Pournima pink highlight) and No Moon (Amavasya blue highlight).

We can see that since the low formed at 18838 levels in month of October 2023, prices have been forming a low and reversing up on every lunar cycle. The same can be clearly seen that after Full moon and no moon prices rallied for atleast 2 to 3 days.

The latest Lunar cycle was on 25^th January 2024 and prices again formed a low on the same day and continued the positive momentum despite of the volatility seen prior to the lunar cycle.

It is interesting to see correlation of stock market to Lunar cycles which is working very well. Do note that change in relationship of Nifty to moon cycles will be an indication of change in medium term trend i.e. if prices form a top instead of a low on Lunar cycle day we can expect negative reversal.

Nifty Neo wave pattern – Nifty overall fall was sharp and fast from 22124 to the lows of 21137. This was one of the biggest decline in entire rise. That confirms that the fall was wave a and we are moving up in form of wave b of a Flat corrective pattern. A flat correction is a 3-3-5 pattern and wave b needs to retrace beyond 61.8% of wave a.

As of now given the steepness of rise wave b is still ongoing and post its completion we might see wave c again taking prices lower.

The above scenario indicates we will see high volatile movement but within a big range. Option traders can accordingly form positions basis of the above methods of forecasting.

In a nutshell, Lunar cycle is working extremely well to catch reversals and Neo wave can help for price forecasting and possible path prices can traverse.

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What is difference between Elliott wave and Neo wave? Practical Application on Nifty charts

Neo wave is an Advanced Elliott wave method with more number of rules and newer patterns to increase the overall objectivity.

Elliott wave was originally discovered by R. N. Elliott in 1930s. His original work mentioned that stock market does not move randomly but in systematic fashion that follows Fibonacci numbers and natural laws. This systematic movement in prices are in form of waves. Normally there are 5 steps forward and 3 steps backward resulting into a net progression which is valid for stock market as well. The concept cannot be just applied but one needs to understand the basic premise and certain rules to apply it objectively.

Any price movement as per basic Elliott wave is classified into Impulsive and Corrective. There are various patterns within these broader heads. Impulsive waves need to follow three basic rules:

1. Wave 2 cannot retrace complete of wave 1
2. Wave 3 cannot be the shortest of the directional waves 1, 3 and 5
3. Wave 4 cannot enter into territory of wave 1

The above 3 basic rules if followed then the price movement under consideration can be classified as a normal Impulse wave.

However, when the market structure is complex there is possibility that the movement can be counted in many different ways. This can result into subjectivity and the entire purpose of wave theory can be lost. To overcome this limitation Neo wave has more rules to define a simple impulse pattern. Following are a few of them:

1. Wave 2 cannot retrace more than 61.8% of wave 1
2. Wave 3 cannot be the shortest of the directional waves 1,3 and 5
3. Wave 4 cannot enter into territory of wave 2
4. There has to be atleast one extended wave which is going to be 1.618% of non extended wave. If there is no extension then the pattern under consideration is corrective
5. One of the directional waves should subdivide
6. Corrective waves should consume more time than the preceding impulsive wave
7. Touch point rule: Out of 6 points not more than 4 points should lie on the channel
8. …
9. …etc

The above shows only a few set of rules for an impulse pattern as defined by Neo wave to all the rules more in detail attend Masters of Waves Online training happening on 20^th – 21^st January 2024

–   Diametric Pattern

–   Neutral Triangle

–   Extracting Triangle

These new patterns are equally important to understand because majority of the movement seen in the world equity markets are taking the forms of these patterns that were never covered in original work of R. N. Elliott.

Let us look at Nifty chart as per Neo wave Diametric pattern –

Nifty hourly chart:

Above chart of Nifty shows Diametric pattern which got completed near the highs of our target 22118. Post that we have seen sharp decline on downside indicating that the opposite side move has started.

This is confirmed by using the technique of two stage confirmation. Break below the d-f trendline near 21650 provided the 1^st stage of confirmation and this was followed by breach below the entire up move in form of wave g near 21440 levels.

By combining this two stage confirmation technique it is evident that the top is formed and we have entered into sell on rise instead of buy on dips. Also this is the biggest decline seen in the entire rise that further confirms that the top near 22118 is going to be protected for weeks ahead.

With this information provided by Neo wave one can trade exceptionally well using Options and accordingly form trading strategy.

Combine this with Fibonacci trading system to identify key reversal areas. We have been bullish on Nifty since the levels of 19200 and mentioned about targets of 22118 which worked precisely as per Neo wave

We turned bearish as soon as the level of 21650 was broken and now aiming for 21098 followed by 20924 levels on downside.

In a nutshell, Neo wave can be used to forecast the market right from short term 5 minutes to long term multibagger stock selection.

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Nifty Crashed by 400 point, Is the Top formed?

Nifty crashed post HDFC Bank results had Gap down opening below 22000 levels, Is it time to buy or sell?

Nifty anticipated up move till 22118 as per Neo wave Diametric pattern.

Nifty hourly chart anticipated on 28^th December 2023

Nifty hourly chart:

As shown on above chart prices have moved precisely as expected in form of Diametric pattern and completed wave g higher.

Two stage confirmation technique – is concept as per Neo wave that helps to identify major and minor reversals trade setup.

Post achieving the target of 22118 there is a sharp decline that has taken away the last rising segment in faster time thereby confirming that a bigger degree top might have formed and we might be entering into sell on rise from buy on dips over short term.

Over short term prices can head towards the level of 38.2% Fibonacci retracement as long as 22000 remains intact. The support as per Fibonacci is near 20873.

In a nutshell, it is time for Bulls to embrace the sell off and bears might be coming out of hibernation. Weekly and daily trend both has turned negative and move below 21490 will open targets for 20873 on downside.

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Nifty at Lifetime Highs! You Will Not Believe This Forecast Using Elliott Waves!

Elliott wave is GPS of the market and helps to derive short term to long term targets. Neo wave is advanced concept of Technical analysis.

Below chart of Nifty on daily and short term time frame was shown in daily equity research report – The FinancialWaves Short term update when prices were even below 21000 levels.

Nifty daily chart – anticipated on 11^th December 2023 

Nifty daily chart – Happened as of 15^th January 2024 

Nifty hourly chart – Anticipated on 28^th December 2023

 Nifty hourly chart – Happened as of 15^th January 2024

Nifty has been moving precisely the way we have been forecasting since months as per advanced Elliott wave – Neo wave path.

In early November 2023, when Nifty reversed from the Gann levels of 18838 we mentioned about the possible upward journey to start despite of the event of Israel Hamas war and US Bond yields. Index has obliged and rallied by more than 3000 points from there. We even published a video why the war will result into mark of major low for Indian equity markets if you following on YouTube.

Later in early December 2023, we mentioned about the start of “Mother of all Bull Markets” and why one should avoid catching a top and to continue to ride higher for targets of 22118.

Anticipated daily chart- Nifty first chart was published in the daily equity research reports on 11^th December 2023 when we mentioned about plausible target of 22118 when index was only at 20997 as can be seen on the chart. It was then forecasted that wave (e) of ongoing Diametric pattern will be equal to wave (c) at this level. BANG ON!

Anticipated hourly chart – Later again on 28^th December 2023, the short term path of Nifty was shown on hourly chart. This path was again on basis of a Diametric pattern that forecasted the market to show dip on lower side to 21500 before we move to the upside target of 22118 levels. BANG ON!

Happened – Nifty moved precisely as per both of these charts that was shown and prices rallied sharply higher from November onwards. For the first time index touched lifetime high levels of 22115 which is just short of 3 points of target being published nearly 2 months back. This is enough proof that shows the method of forecasting works despite of the news or events that majority is tracking.

We believe that “Bhav Bhagwan Che” and one needs to ensure to follow the rules of Neo wave to trade with high conviction.

As of now this ongoing wave (e) on daily charts and wave g on hourly chart has still not shown any reversal signs. Next level as per Gann is near 22276 and we will keep a close watch if prices start showing any type of exhaustion signs.

Two stage confirmation technique – This is a powerful method to confirm if the ongoing trend has reversed. This concept as per Neo wave suggest that as long as prices does not breach below 21790 the ongoing trend is continuing. Below this level we will come out with further path ahead and publish the same in our daily equity research reports.

In a nutshell, Nifty trend remains bullish unless a reversal is witnessed below the support zone of 21890 followed by 21790 levels. On upside our target of 22118 is now achieved and above this we can aim for Gann level of 22276!

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Nifty Key Levels to Trade Elliott wave – Headed Above 22k?

Elliott wave – Neo wave is GPS of the market that helps to understand the maturity of trend and if we are going to start minor to major movement much before it happens.

It is very much possible to forecast the market using simple Technical analysis methods.

Below is chart of Nifty that was tweeted and also shown in the webinar on 10^th January 2024

Nifty hourly chart – Elliott wave counts Anticipated on 10^th January 2024 

 

 

Nifty chart Happened as on 12^th January 2024 

 

 

Elliott wave analysis – Above chart of Nifty shows that when majority have been guessing the direction and anticipating a reversal on downside, we have maintained our stand that the ongoing correction is opportunity to buy and prices can reverse back on upside from Lunar cycle day.

Lunar cycle - 11^th January was a No moon or Amavasya and in the entire up move since the lows of 18838 on Gann level we can see every Lunar cycle there has been a low formed since the entire rise from 18838.

As shown above Nifty moved from 21625 to above 21850 in just a day’s time and that too when the price was right.

Prices are currently in wave iii of (v) and our target for 21118 remains active that has been forecasted more than a month back.

Neo wave is advanced part of Elliott wave which has more patterns like Diametric, Neutral Triangle along with more set of rules. This make Neo wave extremely objective and along with two stage confirmation technique one can enter with prudent risk reward setup.

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Multibagger Stock: Persistent System up by 60% in just 8 months!!

We published about Persistent System in May 2023 and predicted possibility of Multibagger returns in coming 2-3 years. Check out the research we had published on 30^th May 2023 itself – This stock has managed to hold its gain and gave more than 60% returns in 8 months of span and made a life time high of 7560 levels.

Persistent System Weekly chart Anticipated as on 30^th May 2023 

Multi-bagger stock recommendation: PERSISTENT SYSTEM

 

Buy Price – Accumulate at current levels near 5050 and more on dips towards 4290                           

 

Time Horizon –2 to 3 years

 

Investment – 5% of capital

 

Target price –??

 

Stop loss - ??

Anticipated as on 30^th May 2023– Elliott Wave Theory:

Persistent Systems Limited is engaged in the business of building software products. The Company offers complete product life cycle services.

The stock is moving in classic Impulse manner. Wherein, Primary wave 2 was completed in March 2020 near 420 levels. Since then, the stock has witnessed a classic impulse rise in form of Primary wave 3. Primary wave 3 is further subdividing in nature. Wherein wave iii is ongoing on the upside. Prices have formed classic inverted Head and Shoulder pattern. Usually this pattern forms near lows but this time it looks to be forming at the top by making an exception.

The stock is following 86 Week’s Time cycle. The dotted red line represents 86 Week’s Time cycle and we can see sharp bounce back on upside after prices are near that zone. The next cycle is due in the month of July 2023.

Persistent System Weekly chart Happened as on 30^th May 2023

Happened– The stock has been moving in sync with our expectation. Stock made low exactly near our cycle and since then it has shown a really good rise of overall 60% from the lows in just 8 months of span!!! It has touched its fresh record high near 7560 levels recently and currently it is quoting near 7430 levels. The overall up move has been strong and we expect prices to achieve its target of...levels in coming months
. 
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CENTURYTEX: Massive Move by Combining Rounding Bottom with MACD

Using price patterns along with basic indicators such as MACD (Moving Average Convergence Divergence), one can effectively capture significant movements in stocks. See how we chose CENTURYTEX, a stock that has increased by over 15% in just 3 trading sessions.

We published the following research on CENTURYTEX pre-market on 5th January 2024 in "The Financial Waves Short Term Update” which our subscribers receive pre-market every day.

CENTURYTEX Daily chart Anticipated as on 5th January 2024

CENTURYTEX Hourly chart Anticipated as on 5th January 2024

Wave analysis as on 5^th January 2024

CENTURYTEX has been moving higher recently and intact in strong uptrend. In the previous session it closed with a massive gain of 12.21%.

On the daily chart, in the previous session prices formed a bullish candle. Price has closed above 1365 which confirm breakout of the rounding bottom pattern. MACD is above 0 and MACD line crossed above the MACD signal line which indicates that bullish momentum has increased in this stock and may continue in the coming session.

As shown on the hourly chart, we have applied parabolic SAR which used to determine the price direction as well as draw attention to when the price direction is changing. A series of dots placed below the price which is deemed to be a bullish signal. Closest support is placed at 1315.

In short, trend for this stock is positive. Use dips towards 1360-1380 as a buying opportunity for a move towards 1530-1550 levels as long as 1315 holds on the downside.

CENTURYTEX Daily chart happened as on 10^th January 2024

The stock moved as we anticipated. CENTURYTEX have given breakout of Rounding Bottom with huge volumes which was a bullish sign. After a dip, prices showed a sharp rise and achieved our target and moved way above and made a life time high near 1589 levels which is more than 15% in just 3 days of span.     

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MAXIND Bang On- 2 Best Indicators You Cannot Miss!

MAXIND Bang On- 2 Best Indicators You Cannot Miss!

Sometimes simple price pattern along with price indictors creates wonder if one combines it together! See yourself how we identified such massive move in MAXIND. Check out how we selected this momentum stock named as MAXIND which has rallied more than 15%.

We published MAXIND analysis in "The Financial Waves Short Term Update" on 3rd January 2024 which our subscribers receive pre-market every day. Check out below the detailed research report that we published.

MAXIND Weekly chart Anticipated as on 3^rd January 2024

MAXIND Hourly chart Anticipated as on 3^rd January 2024

Analysis as on 3^rd January 2024

MAXIND has been moving higher recently and intact in strong uptrend. In the previous session it closed with a massive gain of 9.97%.

On the weekly chart, in the previous session prices formed a bullish candle. A weekly close above 195 will confirm breakout of the rounding bottom pattern. We have shown ADX indicator which gives an indication if the stock is trending or in a trading range. The low readings of ADX indicates that the stock is in a range. The Adx of this stock is 34.94 giving an indication of a trending market. The reading above 25 means strong directional strength.

As shown on the hourly chart, we have applied parabolic SAR which used to determine the price direction as well as draw attention to when the price direction is changing. A series of dots placed below the price which is deemed to be a bullish signal. Closest support is placed at 195.

In short, trend for this stock is positive. Use dips towards 202-204 as a buying opportunity for a move towards 225-227 levels as long as 195 holds on the downside.

MAXIND Daily chart Happened as on 8^th January 2024

Happened: After we published the report, the stock made a dip exactly towards 202 levels which we mentioned earlier. Within a single day, the stock has given more than 15% return in such choppy market and moved way beyond our target which was of 227 levels. Stock made high of 233.3. Price action supported the trend and as a result we saw a sharp rally in MAXIND.

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Trading Using Ichimoku Cloud with Patterns of Elliott wave

Ichimoku Cloud is technical analysis concept that if applied along with Elliott wave can provide high conviction trade setups for Intraday, Swing trading.

Also Options Traders must know this forecasting method to trade with an edge over others.

Nifty daily chart with Ichimoku Cloud

Above is daily chart of Nifty along with Ichimoku Cloud that shows that since the rise from the lows of 18838 prices have managed to find strong support on the cloud and bounce back.

We can see that even this time prices came close to the cloud support and is attempting to reverse back higher.

Also everytime prices touch the cloud it suggest possible change in wave count. We can see that all corrective wave b, wave d and now wave f came to the cloud.

Two stage confirmation (Neo wave concept) along with reversal above the red (base line) and crossover of base line above conversion line (blue) is a perfect trade setup for positional options trader.

In a nutshell, Nifty looks to be at important juncture completing wave f and possibly starting wave g higher. Further confirmation will be obtained on break above 21683 Gann levels taking prices beyond 22k. On downside 21520 remains important support.

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Nifty Bang ON movement as per Elliott wave Pattern! Must See!

Elliott wave is GPS of the market. It helps in understanding the maturity of trend and also provide complete trade setup.

We published an article yesterday mentioning the medium term trend for target beyond 22k – read here

However, Neo wave helped to capture the short term movement including the sell off seen recently.

Below is the chart of Nifty shown on 28^th December 2023 indicating price movement over short term, before the up move to resume.

Nifty hourly chart – Anticipated on 28^th December 2023

Happened:

Elliott Wave analysis – Neo wave is advanced part of Elliott wave with more rules and patterns providing increased objectivity.

As shown on first chart which was published on 28^th December it was mentioned that prices can head towards 21820 levels in form of wave e where it will be equal to wave c and then we can see short term correction before the up move above 22k levels.

Nifty made a high near 21834 and reversed on same candle and touched intraday low of 21520 as on 3^rd January 2024.

2 stage faster retracement concept- Advanced Elliott wave – Neo wave gives the concept of two stage faster retracement which confirms if the ongoing trend is about to reverse. This helps to get precise entry with good risk reward opportunity.

So a faster pullback above 21760 will indicate that wave f is over and wave g is probably starting.

By understanding Neo wave patterns and rules trading accuracy and ability to forecast market can increase sharply.

In a nutshell, Nifty is in medium term up move with short term correction currently seen precisely as expected. Post completion of wave f we are expecting upward move in form of wave g and the exact entry of the same will be derived using the above two stage confirmation method.

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