Skip to main content

Nifty : Bulls & Bears, Who Rides On What?

"Nifty : Bulls & Bears, Who Rides On What?" Well, the discussion on this issue can be an endless. However, the importance and the very existence of both makes the market more reliable and provides an endless opportunities for both buyers and sellers. And I think there is no doubt about it and everyone agrees on it unanimously.



Above is Nifty's chart on daily time scale, showing move from 6825.80 to 9450.65. I have tried to simplify and put forth my point of views as far as possible and also have put up some notes in chart as well.

Below are some of my observations, that I would like to put forth the readers:

(i) The move from 6825.80 to 8968.70 in Nifty looks to be a leading diagonal formation. A leading diagonal can be wave 1 of impusive run or wave A of corrective pattern A-B-C.

(ii) The total fall in Nifty from 8968.70 to 7893.80 was 50% of its total rise from 6825.80 to 8968.70 in simple A-B-C formation.

(iii) The rise in Nifty, from the low of 7893.80 to 9450.65, looks to be a three waves formation, untill now, whereby, Nifty more or less looks to have finished its upside move with completion of wave v of wave C/3 @ 9450.65.

(iv) Also, the move from 7893.80 to 9450.65 is more than 138.20% of total fall from 8968.70 to 7893.80. So, the possibility of irregular B wave of flat corrective pattern (3-3-5) is ruled out. But, the possibility of wave X cannot be ruled out at this point of time.

(v) Wave C/3, has total rise of 1123.45 points which is almost 2x of wave A/1, which had total rise of 567.25 points.

(vi) Wave i, iii of wave C/3 have total rise of 654.95 points and 413.80 points respectively.
(vii) As wave iii of wave C/3 is shorter than wave i of wave C/3 wave v cannot go/end beyond 9488.95, as third wave cannot be shortest among imulsive wave one, three and five.

(viii) Nifty was closed at 9422.40 having P/E ratio of 23.93.

If 9450.65 is the end point of wave X then market may see downward movement upto or beyond 7893.80. Also, a bearish divergence is visible on MACD oscillator on daily time scale of Nifty's chart. Besides, it is observed that the Nifty might form an Evening star formation if it opens below close of 11th May, 2017 candle and closes near or below the opening price of 10th May, 2017 candle.

Let us see what happens on 12th May, 2017 and what market brings out for the traders & investors.


Disclamer:

All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade nor does it or the publisher of it guarantee any sort of return or the correctness of the post or any materials.

Undertake proper research and advice of your investment consultant before taking any trade.

Trade at your own risk.

Twitter: @beta_trade

Popular posts from this blog

RPower: On The Eve Of Q4 Earnings

Reliace Power has just reversed after touching the supply line drawn in the chart connecting the two highs of 61.25 and 56.45.
The stock of RPower, before breaching out of the supply line and start new bull rally, is trying to test the patience of the investor who have been invested in the stock since the Initial Public offerings or of those who might have invested in the stock on the higher price after the listing of the stock on Indian bourses.


The stock may try to touch the upper resistance/supply line before it starts moving further down.

Disclamer:
All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade nor does it or the publisher of it guarantee any sort of return or the correctness of the post or any materials.

Undertake proper research and advice of your investment consultant before taking any trade.

Trade at your own risk.

Follow me on Twitter : @beta_…

Adani Port: Targeting Price Of 400 Or More

The Stock of Adani Port looks to be in the extended wave III , as shown in the chart, if the alternate wave count is correct. The stock is currently trading @347. The stock can see an up move targeting price of 400 or more. However, if the stock moves below the price of 317 then the stock can see further decline up to the price level of and get its support around 275-285.



It shall be noted that the stock is expected to move in the parallel channel drawn.
Disclamer:
All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade nor does it or the publisher of it guarantee any sort of return or the correctness of the post or any materials.

Undertake proper research and advice of your investment consultant before taking any trade.

Trade at your own risk.

Twitter: @beta_trade

Mothersumi : Rising Wedge/Ending Diagonal

Fellow Readers,
There has been witnessed a "Rising Wedge" pattern in the stock of MOTHERSUMI, the same has been shown in the chart. This rising wedge pattern, at first look, looks like an "Ending Diagonal" pattern. As per the EW Principle such ending diagonal patterns appear either in the final 5th wave of impulsive run or the C wave of an A-B-C corrective pattern of the stock.


Though, I am not sure about at which degree of the stock is currently trading, but the knowledge and experience that I have gained in EW Principles, considering myself still at learning stage, suggest me that the stock is currently trading in its "Intermediate" wave IV of its Primary wave 5 of its Cycle Degree wave 1 which started way behind in the month of October, 1998.
As said before, keeping in mind the rules and guidelines of EW Principles, the stock is currently trading in its Intermediate wave IV and probably forming a complex correction either in double (W-X-Y) or triple (…