Nifty rallied by more than 500 points in just two days of time and many are looking at it in complete shock.
Trust me we did mention it in the daily morning daily Research, generated Buy calls on Nifty, Bank Nifty and Momentum stocks on 27th May 2020 morning itself before the strong rally started.
Now have a look at the below chart of Nifty on an hourly time frame and know the reason yourself why despite of all the pessimistic news or events like worst GDP expectations post-independence, Locust swarm attack, Cyclone Amphan and Covid-19.
Nifty hourly chart: (published to clients even before the move happened)
Elliott wave analysis:
Following was mentioned in the morning daily research report – The Financial Waves short term update on 27th May 2020 morning before markets opened
“From the overall pattern perspective the ongoing move looks like wave x right now which is probably forming a triangle pattern. A faster retracement above 9180 will indicate that wave x is complete and the up move is probably starting.”
On 28th May morning research following was mentioned – “On the hourly time frame you can clearly see that price has managed to break the multiple resistances at 9180 which is also the neckline of the inverted head and shoulder pattern. The target of this head and shoulder pattern as projected from 9180 towards the head of 8800 is near ……. which coincides exactly the upper end of the daily Bollinger Band and the gap area on the hourly chart. There has been short covering as there have been many shorts on the system which started covering as soon as 9180 was taken out, which resulted into a short squeeze on the upside.
In short trend for Nifty is positive. Use any dips as buying opportunities with immediate support near …….. level. The magnet of 9350 that we have talked about is back in the game. We saw some deviation below that magnet and we should now see some deviation on the upside so that the average of 9350 is maintained.” BANG ON!
Happened: Nifty moved precisely as expected and rallied sharply post breaking above 9180 levels that we have been talking about. The reason on the above chart is self-explanatory and majority who are too glued on the news would miss the entire trend yet again!
So, how to get in the trend from here on and time the trade with precision? We generated buy on Nifty near 9110 levels on 27th May and also on Bank Nifty. Nifty rallied nearly 400 points and Bank Nifty more than 1500 points. Get access to the Nifty, Bank Nifty and stock Calls / Advisory and get research reports free along with it over here
Momentum calls: During such times it is important to capitalize by buying the stocks that can show momentum along with broader market. Always remember not every stock will move the way we expect but it is important to maintain strict stoploss as these are high risk trades but with potential to give the max gain in shortest possible time. Get access now as the momentum starts building UP
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