Wednesday, November 23, 2011

>Nifty analysis update

Nifty continues to fall, with small sideways uppish blips in between.Relentless selling
Anyone who tried catching this falling knife,Would surely have got burnt badly.
The chart shows a sleep parallel channel and we are yet to break that channel.
The fall has even breached the double bottom support 4700.
The parallel channel fall suggests we are still in 3rd wave fall ,I would give some more
time to nifty before deciding on targets again so till then take it easy.

Tuesday, November 22, 2011

>stubborn 3rd wave in impulse(elliottwave)

Usually most of wave traders spend most of their time on charts trying to catch stubborn 3rdwave. As the rule says 3rd waves are usually the longest and fastest in terms of price
travel .It requires lot of practice and imaginative mind to figure out the perfect wave setup
for trade,With practice one can get hold of waves unfolding which in turn gives a solid edge
in timing much better than any indicator can provide.
Few things which can improve your wave counting ability!!
1)Count waves from a higher time frame and then gradually come to lower time frames.
2) Always try to count waves from important lows or highs.
3) Go through as many charts possible.
4)Counting impulse(5 waves) is easier than counting a correction or abc:).
5) Label the chart with your count with date and check at a later date how you fared.
this should be a daily routine,This can help in understanding market moves in detail.
6)Always have a alternative count in mind and as market moves figure out which count
fits best.
7) Gap ups and gap downs usually happen in 3rd wave,Also indicators can be in oversold or overbought for most of the time when market travels in 3rdwave.

I am attaching a chart of a stock punjloyd to show the wave counts
the green arrows are 3rd wavesHope these points help in counting waves cleanly.


Monday, November 21, 2011

>Mahindra and Mahindra analysis update

Auto sector as had mentioned witnessed sharp fall.M&M ,TATAMOTORS ,BAJAJ AUTO ,MARUTI ETC witnessed sharp falls,In my old post Auto sector had given analysis of the
auto sector heavy weight m&m it reacted sharply to the resistance and is already 100+ points down from top.It looks to be falling in impulse which suggests it would turnout to be a good
short again in rises keep an eye.A chart is attached to shown vicious impulse still on.


Friday, November 18, 2011

>Nifty elliott wave counts

Turbulence galore!!!
In my last nifty post nifty analysis had mentioned about Y ending in 4700-4600 range
we reversed from 4700+-20 points,Had categorically written about a good relief rally .
We did see fantastic pullback(4700-5400)a three wave move suggesting another complex
corrective wave.The following chart shows that.
The first chart shows the 3 wave up X relief.The second chart is weekly which is showing the
expected abc unfolding over next few months,a can be finishing near 4700+-50
b can go back up to 5000+-50 the final c can go to 4500 levels if it stretches then 4200-4000.
The point to stress here is you see each abc retraced 60% of previous abc ,Which usually happens in complex corrections,That's the reason we are yet to see panic in Indian markets as the rises retracing the drops upto 60% and dropping again so a slow drop nevertheless lowertops continuously !!!!!!,Would update if market does something else.