Nifty Analysis 9 April 2012

Nifty Spot Movement - 1 min Chart on 9^th April 2012 but in Broader View: -

·        The above chart shows trend line in various colors but I would like to show that how the prices are taking the support and Resistance and acting as short term price or trend reversal.

·        These are actually Channels and Triangles. Nifty spot prices are moving inside the triangle shown in the RED color which I am looking at Ending diagonal pattern as per EW theory. Currently Nifty is in the E wave in the ABCDE pattern.

·        Ending Diagonal Pattern – All waves has internal 3 wave structure i.e abc

·        Ending Diagonal can be seen after the major moves (Specifically after 3 waves). Ending Diagonal usually seen in the 4 or 5 Wave of the Impulse 5 wave pattern. But it is not necessary as book say it can be observed in the B wave of the corrective 3 wave pattern.  

·        So where we are now and where Nifty will go tomorrow or in the rest of the week.

** As per the chart we are in the E wave which again expecting 3 wave corrective (abc) pattern.

** Today We have completed the a wave. Why a wave completed?

     As we retrace 61% of D Wave.

     As we completed 5 wave internal structure of a. Also, another possibility came up that since a is the 5 internal structure then we will should see the zigzag or triangle pattern.

    Now since we have completed a, it should correct to upward and has to made b which I am assuming 5380/5300/5320.

    Then, price should reverse from wave b and has to make C in the down word direction. C and E target has to be same approximately 5130/5110.

·        Let’s watch tomorrow’s movement. Happy Learning!!!

Profit of 26 Points in our last Short Call. Cheers!!!

Book Profit as per our last Call @ CMP nifty 5349 -

Book Profit as per our last call @ CMP nifty 5349.

3 Apr 2012 Nifty Short Positional Call:-

CMP Nifty Fut - 5386, Stop Loss - 5420 Target 1st - 5310/ 2nd - 5250 / 3rd 5160.

Nifty View as of 23 Mar 2012

·         We have completed Complex correction pattern which is Contracting Triangle with reverse alternation as per Glenn Neely method of EW theory.

·         Symptoms of the this triangle is observed as per below;

o   Triangle observed at the end of 5 waves in 1 hours chart of Nifty.

o   Wave A is most violent in the pattern.

o   Wave B is 61.8% of wave A.

o   Wave D is larger than Wave B. ( in standard contracting triangle is wave B is always larger then wave D. Here D is larger as reverse alternation.)

o   Wave C is 61.8 % of Wave A.  (Here we found more 61.8 %)

o   Wave E is atleast 38% till 99% ( We have completed 99% and price reverses today from point Wave E)

o   But need to be very cautious to take trade now as need to wait for 2-3 days that confirm of the reversal pattern ( Usually, Triangle is major reversal pattern)

·         Also, We already have confirmation signal that.. as per the Daily chart, we are in the 5 Wave and still we haven’t break the wave 4 point 5171. If that breaks in next week than we altogether in the wrong side. So next week is the crucial week for the same.

Intrday Stop Loss hits 5300 just now.... 10 point loss..

Intraday Nifty Call

CMP Nifty Future 5310 - Buy 5310 -5315, Stop Loss 5300 Target - 5350-60.