Nifty Index has been moving in a range and the move we are witnessing sustains only for a single day. Markets are testing patience even of the expert traders and during such times it becomes important to identify stocks that have the potential to give returns even during such range-bound markets. We are seeing rotational and news driven moves in stocks. The movement has been skewed and limited only to specific stocks it therefore becomes important to identify and bet on the stocks that have the potential to show returns.
Kajaria ceramics from the momentum research went amazingly well during such market scenario and gave a return of more than 10% that too in just 16 trading days. Check the below research from that research report.
Below is the chart showing detailed analysis published in our research report –“The Financial Waves Momentum Update”
Kajaria Ceramics 60 mins chart: (Anticipated as on 26th December 2018)
Kajaria Ceramics 60 mins chart: (Happened as on 22nd January 2019)
Following research is taken from Momentum report published on 26th of December 2018.
Buy Price – Buy above 496
Time Horizon – Not Applicable
Investment – 5% of capital
Target price – 549
Stop loss – 463
Partial Profit levels- 515
Wave analysis: Published on 26th December 2018
Kajaria Ceramics after forming an important low 310 showed strong bounce back and has managed to break above the multi-month channel resistance. This indicates that the complex correction pattern is over at the lows and we have started seeing pullback on upside of the entire fall. 20 days EMA is also providing strong support to prices.
As shown on hourly chart, prices are moving higher in the form of wave (iii) and move above the high of 496 can intensify the buying pressure in this stock. For these counts to remain valid we should not see overlap of ongoing leg with minor wave i which is at 463 levels and so the same will act as a good stop. Any overlap here will suggest wave (ii) is not yet over. We can expect a target of 549 which is near the channel resistance.
One should keep looking at booking partial profits to ensure the capital remains protected and trail the stop to cost for remaining positions. So, use move towards 515 for booking partial profits.
In short, overall trend for Kajaria is positive and eventually the stock can move towards 549 on upside which is the channel resistance. Break above 496 can be used to initiate long positions with 463 as strict stoploss.
Happened: Prices moved precisely as expected and showed a whopping gain of more than 10% in the form of wave (iii). This shows the power of Impulsive pattern. The stock made a high near 554.65 and achieved our target. The stock showed amazing returns in just 16 trading sessions.
The above research clearly shows how one can capitalize the study of Elliott wave and ride the ongoing trend. To know more about our next pick and to ride the trend in outperforming stocks you can get access to our report named “The Financial Waves Momentum Update”- Get access now
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