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Showing posts from March, 2017

Mothersumi : Rising Wedge/Ending Diagonal

Fellow Readers,
There has been witnessed a "Rising Wedge" pattern in the stock of MOTHERSUMI, the same has been shown in the chart. This rising wedge pattern, at first look, looks like an "Ending Diagonal" pattern. As per the EW Principle such ending diagonal patterns appear either in the final 5th wave of impulsive run or the C wave of an A-B-C corrective pattern of the stock.


Though, I am not sure about at which degree of the stock is currently trading, but the knowledge and experience that I have gained in EW Principles, considering myself still at learning stage, suggest me that the stock is currently trading in its "Intermediate" wave IV of its Primary wave 5 of its Cycle Degree wave 1 which started way behind in the month of October, 1998.
As said before, keeping in mind the rules and guidelines of EW Principles, the stock is currently trading in its Intermediate wave IV and probably forming a complex correction either in double (W-X-Y) or triple (…

NIFTY: An Update

Fellow Readers,
Few days back we have discussed about the Nifty, which was making new highs despite sluggishness witnessed in many leading stock. The question that arose in the mind was whether the current run to 'All Time New High' is a boost to a new bull run or it is a trap for positional and day traders? Though, the answer to this question is not as easy as it seems, and who know what is held beneath the future. Still, with genuine and continuous efforts we can get better result if not best.


An hourly chart of Nifty showing its movement from its recent low of 7893.80 (26/12/2016) to its recent high of 9218.40 (17/03/2017). Beside, there has been shown possible wave counts, giving due consideration to EWT principles. Moreover, a parallel channel line drawn in connection with wave 5 of 'C' or '(iii).
From the chart shared above and the parallel channel line shown, it shall be noted that Nifty is either reluctant to break below or taking support at the lower line…

INDUSINDBK : Sell/Shot @ 1375 Target 1311-1258-1216 SL 1425

Dear Readers,
A negative divergence has appeared in the stock of INDUSINDBK on its daily time bar chart. However, the stock on weekly and monthly chart has not shown any negative divergence nor does it look like to be for medium to long term period. Still, we may see a short term southward movement which may look like a sideways corrective movement to its medium to long term bullish movement.


For short term period of time, i.e., over the next few days or weeks, one may witness a southward movement due to the negative divergence that has appeared on the daily time bar chart of the stock of INDUSINDBK.
One may go for selling or shorting in the stock with the target of 1311, 1258 and 1216 being 23.60%, 38.20% and 50.00% retracement level of its total rise of 359.30 points from its low of 1036.70 made on 24th Nov., 2016.

Giving some space for the possibility of extension of current bull run in the stock showing upside movement a stop loss of 1425 shall be kept on safer side. Those who ar…

DIVISLAB : Buy @ 645 Target 670, 695 and 710

Dear Readers,
The stock of Divis Laboratories has witnessed a sharp fall in today's market. Looking at the current movement in the stock of DIVISLAB on 15 minutes time scale the stock looks good for the buying opportunity.
Below is the 15 minute time bar chart of Divis Laboratories Ltd.


Besides, giving due consideration to the internal wave count of the fall in the stock of DIVISLAB, this corrective movement seems to have got finished with the making of low of 632.55. Secondly, on the time-scale of 1 minute one may notice that from the low of 632.55 to the high of 669.95, was a sharp rise and shall be considered as an impulsive wave. 
On the same time-scale of 1 minute the movement after 669.95, looks like a diagonal triangle (a-b-c-d-e) movement. A sharp rise is expected in the stock on the finishing of the last leg, i.e., 'e', of the diagonal triangle.
Moreover, if the stock breaches the low of 632.55, a probable low and strong support for the short term and near future…

CUMMINSIND : Sell/Short @ 910-911 Target 880-860-840 SL 918

Dear Readers,
If you see the long term chart of CUMMINSIND, you would find that the stock has been witnessing a sideways movement making higher lows and lower highs.


The internal built of the first leg from the low of 746.15 to the high of 947 and third leg from the low of 747.55 to 921 looks like impulsive movements, please refer to the chart for the reference. Let us name those impulsive movements wave 'a' and 'c' for time being
Now, if you see the chart, whereby a resistance line has been drawn conjoining the two tops of these two impulsive movements, 947 and 921, end point of 'a' and 'c', the stock has reached/ touched the resistance line and may find a strong resistance over this point.
This is a suitable point where the traders can sell or go short on this stock at current price of 910 for an immediate targets of 880, 860 and 840 with the stop loss of 918 on upper side.

Disclamer:
All views, charts, comments, post or any materials of any kind disc…

NTPC : Completion of Leading Diagonal

Dear Readers,
A Leading Diagonal Pattern formation has been witnessed and looks to have  completed in the stock of NTPC from its low price of 107.10 to its recent high price of 178.25. The same can be visible from the given chart as shown.


After the completion of this leading diagonal, the stock of NTPC seems to be in corrective zone and looks like forming a simple zigzag (5-3-5) corrective pattern, though it is too early to predict the possible corrective formation. However, at first look it looks to be forming the simple zigzag pattern.
The first leg, wave 'A', of this simple zigzag pattern, looks to have completed its first three waves, is about to complete or have completed it fourth wave and will complete its last wave five over next few days. A parrallel channel has been drawn to show the possible resistance and support point for making entry or exit.
Secondly, the stock is witnessing sideways movement as against the sharp fall in the third wave of wave 'A'. Thi…

Ajanta Pharma : A Neutral View

Dear Reader,
The stock of Ajanta Pharma has witnessed a long "Bull Run" since its low of 6.04 made on 9th April,2009, and looks like there still remain space for its bigger "Bull Run" in years to come than what has been witnessed untill date. It will be too early to predict the future price of it as of now. However, I have tried my level best placing possible wave counts, at various degrees of time cycle, for the further reference of the readers, in the chart shown below this post.
For now, the stock of Ajanta Pharma looks to be in a corrective zone and possibly forming a double (WXY) or triple (WXYXZ) zigzag kind of complex corrective pattern, as shown in the chart above. Those who follow Wave Principle would recognize the same, and their opinions, critiques and comments are welcome.
From the top of 2125 to the low of 1526.65, wave "A" (circled), giving due consideration to its internal wave counts looks to be an impulsive wave. The counter trend of thi…

BHEL: Sell/Short @168 Target 158-151-144 SL 172

Dear Readers,
In the stock of BHEL it has been witnessed sideways movement since its low of 90.15 made on 29th Feb., 2016, the 'Budget Day'. At first look, the movement in the stock looks like it is forming a "Complex Correction" type of pattern.
If this is considered to be true and giving due consideration to the internal counts of the wave from the low of 116.10, wave 'a' of wave "C" or "Y" got completed. Besides, on daily as well as hourly (shared seperately below) chart a divergence is clearly visible.
Moreover, as shown in the chart, until now the stock has been moving in symmetrical way in the channel line drawn. The first leg or wave 'a' of "A" or "W" have corrected almost 50.00% to its rise from 90.15 to 135.45. Considering the same, first leg or wave 'a' or "C" or "Y" may get corrected up to 50.00% of its total rise from 116.10 to 171.75, which comes around 144.
The possible…

Bank Of Baroda : Sell/Short @166-166 Target 160-157-153 SL 170

Dear Rearders,
As shown in the chart, the stock of BankBaroda is breaching the lower support line of the channel line drawn. Secondly, the stock seems to be in corrective zone having completed its corrective wave '(a)' @169.65 of its possible 'flat' type correction. Considering the same the possible irregular '(b)' may get extended beyond the start of wave '(a)'.
It looks good to sell or go short in the stock @165-166 with an ultimate target of 153 being 138% retracement of wave '(a)' with stop loss of 170.
Disclamer:
All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade not does it or the publisher of it guarantee any sort of return or the correctness of the post or any materials.

Trade at your own risk. Undertake proper research before any trade.

DHFL: Sell Or Short @354 Target @325 SL @365

Dear Readers,
A divergence on daily basis has been witnessed in the stock of DHFL, whereby the current price is higher than the previous top, while the current MACD of new top is lesser than previous top, please refer to the chart for the same.
It is expected that the resistance line drawn on the MACD indicator would not get crossed as well as the upper resistance line drawn on the price chart will not get touched or breached. The price for the upper resistance line, in continuation of the current trend until tomorrow, comes around 364.
It is expected that the stock would witness a sharp fall in next 3-4 working days and the start point price of the current last leg of the wave, i.e., 324.55 will get touched at first in the expected fall.

Disclamer:
All views, charts, comments, post or any materials of any kind discussed, published, posted and/or commented are for educational purpose only and not meant to be an advice to trade not does it or the publisher of it guarantee any sort of r…

CNXIT : Divergence Witnessed

Dear Readers,
In my previous post on CNXIT, "NIFTY IT: Will It Join The Bear Rally?", posted on in.tradingview.com, it was expected that it would complete its southward movement started from 12908.10 at the end of January or the first week of February of this year, considering the intermediate corrective movement started from 9295.25 got completed at around 10350.
However, the intermediate corrective movement in CNXIT got extended, which seems to have completed at previous day's top. Yesterday CNXIT not only touched the upper resistance line of the channel line, as shown in the chart, but also breached it by minor points and settling below the same resistance line. The same resistance line shall not be breached on closing basis.
Besides, today's sharp fall have created a divergence in the same and given rise to the possibility of the start of the southward movement.
For the reference to the chart and other details please click on the links attached to this post.
Foll…