Nifty has continued to trade in the red and the sell-off has been broad based. The fall has been sharp as compared to the prior rise. We were able to capture the fall precisely from the beginning and had been mentioning in our daily equity report. Below is the glimpse of the same:
Nifty daily chart: (Anticipated as on 07th May, 2019)
Nifty daily chart: (Happened as on 13th May, 2019)
(Below is the extract taken from the daily equity research report published on 07th May, 2019)
Elliott wave analysis: In the previous session, Nifty had a major gap down opening of nearly 87 points after which it continued trading sideways and formed a low near 11570 levels keeping the gap intact throughout the session.
As shown on the daily chart, Nifty index has been making series of Doji candles since the past four consecutive sessions which shows the prevailing indecisiveness among the traders. For the first time prices breached and closed below its 20 Days EMA which was intact since the beginning of upmove from the lows of 10820.
In short, Nifty looks to be at a crucial juncture and if prices break below its important support of 11550 we might witness selling pressure. Today’s session would be important.
Below are the trading strategy given over past few days and it has worked out brilliantly well on Nifty:
Trading Strategy given on 07th May morning- For today, long positions can be created above 11640 with 11580 as stop and target of 11700 levels. Short positions can be created below 11570 with day’s high as stop and target of 11530 levels.
Happened-Nifty broke the level of 11570 and moved below the target of 11530 levels.
Trading Strategy given on 08th Morning- For today, short positions can be created below 11480 with 11550 as stop and target of 11420 on downside. Long positions can be created above 11550 with day’s low as stop and target of 11590 levels.
Happened-Nifty made a high near 11479 and moved quickly lower below 11420 levels.
Trading Strategy given on 09th morning- For today, short positions can be created below 11340 with 11400 as stop and target of 11280 levels. Avoid creating long positions.
Happened- Nifty moved precisely as expected and moved further below the target level.
The above clearly shows how one can capitalize on wave theory to form the trading strategy which we mentioned in our “The Financial waves trading update”
Daily Nifty trading research report gives the trading strategy for the day and equity research report gives outlook on stocks as well. Get access to “The Financial Waves short term update” and “Nifty trading update” here. Get access here
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