We have been able to capture amazing rise in Nifty despite majority being worried. I have combined advanced technical to catch this reversal of more than 300 points in span of 2 days.
Below is the hourly chart of Nifty 50 showing detail analysis using advanced concepts like Elliott wave, Neo wave and Time cycles to forecast the market and then use trend following method to stay in direction of the trend.
Nifty60 mins chart:(Anticipated as on 1st November, 2018)
Nifty60 mins chart: :(Happened as on 1st November, 2018)
(Below is the gist taken from our daily equity report published on 1st of November, 2018)
Elliott Waves Analysis:
Anticipated as on 1st of November 2018:
In previous update for Nifty we mentioned, “move back above yesterday’s high of 10285 – 10300 will resume the up move in the form of wave (d) for a trend towards 10550 levels. We will stick with this scenario as long as the supports are protected.”
Nifty in the previous trading session opened with a minor gap and moved lower for the first hour of the session making a low near 10105. Post that prices moved northwards and closed positive gaining around 190 points. Almost all the sectors closed positive with IT sector being among the top gainers. Buying was also witnessed in Midcap and Small Cap sector which closed positive gaining 2% and 1.50% respectively. The top gainers among the Index included Tech Mahindra, Ibulls Housing Finance, HDFC and HCL Tech each of these stocks gained more than 6%. The positivity in the Index started post the strong opening of the European markets.
As shown on daily chart, prices witnessed strong momentum on the upside and closed with a positive bar forming a higher high higher low formation. We are showing the ROC Indicator on the chart which is a momentum indicator and we can see strong positive divergence on it indicating prices are likely to witness upward momentum. As long as we do not see a close below the prior bars low the trend remains positive. Existing long positions can now trail their stop towards 10220 levels.
As shown on hourly chart, prices have broken the downward sloping red channel are managing to sustain above it. We are seeing formation of Inverse Head and shoulder pattern and prices have given a close above the neckline. This pattern usually occurs at the end of a trend which indicates potential reversal on upside. The profit target of this pattern is the difference between neckline and the low of head which gives the target of 10600 levels also the Fibo projection of equality to wave (b) comes near 10550. On the downside 10200 becomes an important low that needs to be intact.
In short, trend for Nifty is positive and prices managed to close above the prior bars high now a move towards 10550 – 10600 can be expected. As long as we do not see a close below 10220 the trend remains positive.
Anticipated as on 2nd of November 2018:
In short, we continue to stay with the positive bias as long as the support remains intact. Long positions created near 10170 – 10200 can now trail stop to 10250 thereby ensuring the positions are now in the money and keep trailing it to ride the ongoing move as there will not be much opportunity to re-enter in case the ongoing move extend towards 10550 as we are expecting. At the same time even if there is sudden negative reversal the profits are locked by using trailing stop method! Enjoy the ride…
Happened as on 2nd of November 2018:
On 2nd of November Nifty opened on a strong positive note with a gap of around 80 points and moved northwards throughout the trading session. Nifty rallied by more than 400 points in just 3 trading sessions. We turned bullish on the Index when 10170 was taken out and we have been precise in predicting the level of 10550 and 10600 at that time itself. The sharp reversal on upside was forecasted using not just one method but multiple methods suggested this reversal. There was faster retracement above the last falling segment, inverted Head & Shoulder pattern, multiple positive divergence and Neo wave Extracting triangle pattern which we assumed. Nifty moved precisely as expected and made a high near 10606. BANG ON!
When you combine various techniques and get the similar outcome it just improves our accuracy in following the right trend. Just imagine if we are able to identify stock with similar techniques. We have come up with Diwali picks using similar analysis. Check Here
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