Monday, May 27, 2013

Retake on Elliott Wave Analysis of Nifty: Target 3305

This is in continuation to my earlier analysis of the Nifty based on the Elliott Waves. I have already written two posts regarding this, one in January, just a few days before Nifty made the memorable high of 6111.80. In that post I had given a minimum target of Nifty to be 4300 but since the top had not been made as yet I assumed that the minimum target could be close to 4500 levels. Just days after that, the Nifty made a high of 6111.80 and started falling down heavily and came down to make a low of 5477, more than 10% down in a matter of days. That made us assume that the wave B was over and that we were now in the wave C and that the Nifty would move down to our perceived target levels. The second post's target of 5528 was given during this fall when the Nifty was still trading at around 5870 levels. The Nifty then did come down to 5477 and almost unexpectedly, started moving up and went up to 6230 and then started falling again.

Thursday, May 23, 2013

Markets Are Bullish: Ankit

The following post is again a guest post by Mr. Ankit Sandhu. As I said, Elliott Waves is his speciality and he has shown another way how the waves can be numbered. Though, his analysis is slightly different from mine, but, you, as readers, should be happy that you are getting another point of view. I will revisit my Elliott Wave Analysis in a couple of days. Over to you, Ankit.

Since start of Jan 2013 Nifty was crawling and was showing signs of weakness which was very clearly visible. Every analyst was happy that Nifty was up 35% from the Dec 2012 lows. Then it started going southwards, there was no buying, valuations were high, fundamentals were not supporting. We were struck by bad news. Markets fell and Indian markets underperformed when compared to global markets. Vikas Sharma Sir did his Elliott wave analysis and it was justified because it had no signs of an impulse wave. Strength wasn’t there so we assumed it was in fact a correction wave. And possibility was there that we again might visit our 2012 lows. 

Sunday, May 19, 2013

Wockhardt - Justified Rise or Operator Driven?

The below post has been contributed by Mr. Ankit Sandhu, a very knowledgeable technical analyst (his speciality being Elliott Waves), and a first time publisher. He believes that one of the counters in our markets is being manipulated (among many others) and he takes it up as a case study here.

WockhardtWhat a wonderful company it is, isnt it? It must be as good as gold that’s why its prices jumped from a low of Rs. 68 in 2009 to a peak of Rs.2160 in 2013.  What a spectacular bull run it has shown. The company must be worth millions now. HEY, don’t be “FOOLED” by this illusion. It’s an operator driven script but I don’t have any idea whether promoters are also involved in it or not.
It is said that everything that shines is not GOLD and everything that is too good to be true isn’t there.

Thursday, May 16, 2013

Is This the Right Time to Buy Stocks?

Stock prices in the Indian markets have been rallying for 20 days now including today. And this rally today was to be expected after the sharp correction that we saw on Monday. But this much??? No, the quantum of the rally was unexpected. There was resistance near 6040 and then at 6090 and it crossed both effortlessly. The Nifty opened with about a 20 points gap up and made no effort to fill the gap, crossed both the resistances and still continued to rise to finally end the day at a high with a gain of 151 points to close at 6146. 

Thursday, May 2, 2013

Bearish Hanging Man Confirmation Needed in Nifty

The Nifty, on Tuesday, opened with a gap up near the highs of the day touching a high of 5962, just 9 points shy of the crucial resistance of 5970. But those highs were not seen for long as it began its slide down soon after opening and made a low of 5868 by mid afternoon and then started a very smart recovery to close near the highs again, though, just a few points in the red near 5930. The candlestick pattern seen on the daily charts is what is known as a Hanging Man. For a detailed analysis of the Nifty, continue reading.