Advanced concept like Neo wave has continued to help us to forecast the trend in Equity Markets. It was in the last week of December 2016 when Nifty was trading near 8000 level we mentioned our bullish stand based on Diametric pattern under formation. Based on the medium to short term structure targets of 8250-8300 zone was given in the research of 29th December 2016. Below we have shown part of research taken from The Financial Waves Short Term Update.

Nifty 60 mins chart: (Anticipated in the morning of 29th December 2016)

Nifty,Elliott wave

Nifty 60 mins chart: (Happened till now)

Nifty,Elliott Wave, Neo Wave

Wave analysis:

As per the research report published on 29th December 2016 when Nifty was trading near 8000:

“As shown in daily chart of Nifty, recent bounce back from 7890 suggests that prices have managed to protect B-D trendline on closing basis. The retest of 7915 level indicates that Nifty has formed “h shaped pattern”. This pattern is identified by us (not in text book) on many occasions. It takes the shape of “h” where prices retest the earlier lows with less momentum and then reverses on upside to trap the bears. As per Elliott wave structure, 7890 is the crucial support which should get protected over next few days and prices should complete its course in form of minor wave (y) ….Target for wave E can be tricky since it is last leg of triangle but prices can retest the channel resistance near 8250 – 8300 levels

Happened: The above research clearly indicates our bullish prediction for Nifty when it was trading near 8000 level. Post publishing this research, Nifty has moved in lines with our expectation protecting the important support and achieved the target level 8300 in today’s session.

Many analysts or traders are now coming out with bullish forecasts. It is interesting to see how most of them came out with bearish predictions towards 7500 when Nifty broke 7900 levels but we maintained our objective outlook of upside reversal and now majority is extrapolating for Nifty towards 8550 – 8600 levels.  So how much steam is left in current rally? To know the same subscribe to “The Financial Waves Short Term Update” which covers Nifty and 3 stocks where short term trading opportunity exist. For subscription visit Pricing Page