Equity markets have been in frenzy since past few days. Sector specific action has continued. During such times it becomes difficult to find a trade set-up. We have been able the capture the swings in various stocks with the help of Elliott Wave and other basic techniques. Kotak Bank is one such stock wherein we captured the move from 1256 towards 1215 levels.
Below is the research which we have published in our daily report “The Financial Waves STU”
Kotak Bank 60 mins chart: Anticipated as on 5th August 2018
Kotak Bank 60 mins chart: Happened as on 10th September 2018
(Below is an extract of write-up taken form the research report)
In the previous session Kotak bank traded in the red zone and made a low near 1251 levels. Post forming a lifetime high in July the stock has not shown any sign of positive reversal and break of important resistance levels are required for the bias to turn positive.
As shown on 60 mins chart, prices are currently moving in the last leg of Diametric pattern, wave g which is expected to take the prices towards 1221 levels which is also the 50% retracement of the previous rise. Also, the EMA is acting as a resistance which keeps the bias bearish until we see the prices moving above the EMA.
In short, overall trend for Kotak Bank looks negative. Any pullback towards 1265 can be used as a shorting opportunity for a move towards 1220 levels.
Happened:Kotak bank moved precisely in line with our expectation and post showing a pullback till 1265 levels moved downwards to make a low near 1215 levels.