Nifty sheds 150 points: 3 powerful Indicators you cannot Miss!Feb 27, 2023
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Nifty moved sharply lower today, was it predictable using a simple technical analysis study and advanced Elliott - Neo wave pattern.
Elliott wave and Neo wave are powerful technical analysis methods and if we combine it with Time then that can help traders with the complete setup right from Intraday to positional trades.
Below shows Nifty Neo wave count along with Bollinger Bands. This research is picked up from the daily Equity research report “The Financial Waves short term update”
Nifty Daily chart
Nifty 60 mins chart
In the previous session, Nifty closed lower for the 6th consecutive day. Market breadth remained in favor of bears with 2035 Declines with 1423 advances and 155 remained unchanged. Amongst the stocks Adani Enterprises continued to drift lower and closed with a loss of -5.11% and Hindalco, M&M, JSW Steel lost the most and remained in top losers list by NSE. India VIX which is considered as a barometer lost -5.97% at 14.18.
During last week, Nifty shredded almost 3%. On the daily chart, we can see that from last 7 trading sessions, prices have not given a close above previous candle’s high suggesting weakness in the Indices. On the other hand, prices hovering near lower end of the channel.
On the daily chart, on the Friday’s session, Nifty started a day with a decent gain. However, prices could not sustain higher and profit booking was witnessed which erased all the early gains and extended its losses and made a low of 17421. At the end of the day, Nifty closed with a loss of -0.26%. As per wave perspective, the entire fall is in form of wave b which has retraced more than 61.8% of the rise which was in form of wave (a).
On the other hand, Time cycle low is formed near the Budget day and is also near 17400 levels. So, protecting 17400 –17350 zone is very important as break below this can result deeper correction.
On the hourly chart, we have used Bollinger Bands. Wherein, not a single candle has managed to give a close above mid-band. Every time when prices tried to close near mid bands rejection was witnessed. This suggests that we need a decisive break of mid-bands with follow up action for fresh buying to emerge, otherwise selling spree may continue and can drift prices lower towards 17350. As per wave perspective, wave g is unfolding on the downside. As per Diametric rule, wave g tends to equality of wave a.
In a nutshell, Nifty closed lower for the 6th consecutive day. For now, a break below 17420 can result into resumption of correction with the targets of 17350 or lower. Whereas, decisive break above 17620 can result into deeper pullback towards 17756(Gann level).
Nifty shed 150 points in the first hour itself. Nifty moved as we expected and made low of 17300.9 and prices not only managed to achieve our target of 17350 but also moved much lower from it. This move we have been able to capture by using 3 powerful indicators i.e. Neo wave, Time and simple Indicator.
For now, short term sentiments have turned onto negative side as Nifty also broke Time support levels which was near 17400-17350. One should avoid catching lows and can use sell on rise method to ride the trend.
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