NIFTY VS DOW JONES

NIFTY ELLIOTT WAVE SCENARIO

The entire move from 2008 if you will see in the chart below you will find that there is lack of impulsive wave because i am not seeing any impulsive wave count in 1,2,3,4,5. If this is not impulsive wave then it is clear now that it is  corrective wave and nifty has been forming complex correction pattern since 2008 on weekly chart. 

In current situation just see the hourly chart give below, from 5480 to till now move is also forming in triple complex correction. I am giving two scenario of wave count below.

In scenario 1 is valid then it has completed its triple complex correction. In this move b wave has not fallen more than 38.2%. Therefore 38.2% of the move from 5970 to till now is coming at 6118. If this count is valid then market will break this level and will increase more dipper correction. Any break below 6080 will confirm that this up move was bull trap. And,

If the scenario 2 is valid than nifty must protect this level and will move more higher level towards 6300 in very short term.
Recommendation- Only Intraday trading is advisable for few days.

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KEEP PATIENCE FOR 6250 NOW

NIFTY UPDATE FOR 14 MAY

Why do you people trade with your expectation when technical analysis is wonderful tools to predict the possible trend. You can also be a good trader. Nifty Eyes Multi Level Money Making Club is ready to make you smart trader cum analyst. Choice is yours.  As I have given alert yesterday about this reversal in price pattern. Nifty fell highest in 2013. Only two stocks  NTPC and Power Grid close with marginal positive otherwise all stocks in nifty 50 group closed with negative bias. The mood is completely bearish now. Nifty retraced 23.6% in a single days of its previous up move. Now next support is around 5928 and after that 5871. Below 5871 direct fall up to 5400. 5830-5840 is immediate resistance for nifty.

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BIGGEST FALL IN 2013

BULLS GONE BEARS ON

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NIFTY X-RAY REPORT FOR 13 MAY

Frequently buying by foreign institutional investors, by supporting  firm trend in global markets and IIP data showing a surge in industrial production in March lifted indices Sensex and Nifty up by over 2.5% last week. Sensex ended the week with a gain of 507 points or 2.6% at 20,083, a 14-week high, the Nifty hit its best levels in more than two years, closing at 6095 gaining 151 points or 2.5% along with midcap and smallcap stocks too jumped higher on strong buying support, the BSE Midcap and Smallcap indices moved up by around 2.3%. FMCG heavyweight which hit a new high last week ended stronger by 6.7%. IT stocks were back again and successfully gain with some encouraging economic data from U.S. side. Auto sector had given strong jump too with market. Tata motors was the star performer in Auto sector gained 8% last week. While Coal India declined 5.7% and Sun Pharma was down 5% last week.

In economic news India’s industrial production rose 2.5% in march 2013 as compare to a revised 0.46% growth in February 2013.

After two days consolidation Nifty gave breakout and went above 6100 and closed above 6100 on Saturday special session. Bias is strong positive. Nifty has not given any single day closing below previous bar since it reversed from 5480 level in this up leg. According to Nifty daily chart momentum indicators are in overbought zone indicating nifty may tired any time. According to nifty hourly chart rising wage/ending diagonal pattern has formed on the chart, indicating that price may face resistance very soon and may turn its face towards downside. I still assume that This up move is a corrective wave according to wave principle. Break below the trend line which is drawn on hourly chart may drag nifty towards 5880 level but remember one thing that we have not got any price wise sell or reversal signal. Highest open interest in 6200 call indicating upper boundary for the current series.

In the last session FIIs bought 11104 contracts of index future worth Rs. 337.34  cores with increasing in open interest. As nifty Future was up 50 points and open interest increased in index future indicating that fresh long position was created in Friday’s session.

LAST   HIGH - 6105  LAST LOW - 6045
WEEKLY HIGH - 6105 WEEKLY LOW - 5867
5 DMA DAILY - 6046
20 DMA DAILY- 5844

50 DMA DAILY- 5783

200 DMA DAILY- 5703 

Several top  companies quarterly result still to come out in coming week, investors are advisable to tread cautiously  over the next few sessions. Global factors will continue to make an impact on the Indian market.

Sustained inflow of funds from FIIs was one of the major contributors for the market's rise to multi-month highs last week. And the trend is likely to continue for a while, But we are getting negative divergence sign on momentum indicators, giving warning sign. However we have  no significant negative news is around to warrant a sell-off.

Dr Reddy’s Laboratories, Bank of Baroda , Bajaj Auto, and Reliance Infra  will announce their quarterly results during the course of next week. The data on consumer price inflation for rural and urban India for April, to be released on Monday and it will set the further trend for the market in the beginning part of week. Encouraging report on industrial production of march will help keep the mood positive for a while but technical indicators are giving overbought indication so mood may turn cautious and even bearish any time, as no big positive triggers are in the market ahead. A positive close on Wall street may set up a steady start for the Asian Markets on Monday. In the latter part of week market may remain into sideways to negative. In the below Advance -decline chart market is showing in up trend but advance -decline ratio is in negative divergence indicating possible reversal in near term.

chart source www.icharts.in

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NIFTY LATEST ELLIOTT WAVE UPDATE 12 MAY 2012

ACCORDING TO NIFTY HOURLY CHART ENDING DIAGONAL PATTERN HAS SEEN WITH NEGATIVE DIVERGENCE ON MOMENTUM INDICATORS INDICATING NIFTY MAY REVERSE SOON. BUT I HAVE NOT SEEN ANY CONFIRMATION ON PRICE WISE. BREAK OF LOWER TREND LINE OF DIAGONAL PATTERN WILL GIVE FIRST CONFIRMATION AND THERE WILL BE OCCUR A CHANCE TO DRAG NIFTY 5880-5860 LEVEL. HIGHEST OPEN INTEREST IN 6200 CALL OPTION ALSO INDICATING UPPER BOUNDARY AND SUPPORTING REVERSAL VIEW.

ACCORDING TO NIFTY WEEKLY CHART THERE IS ALSO A WAGE PATTERN IS VISIBLE IN NIFTY A-B-C-D-E PATTERN.

BANK NIFTY:-

ON BANK NIFTY CHART BREAK OF LONG TREND LINE WILL DRAG NIFTY TOWARDS 12000 LEVEL.