Danger zone - We are on the way to Recession

Nifty - Correction On The Cards

Nifty (CMP: 6237.05) - The action formed a strong negative candle with high volume which signifies bulls are loosing their momentum & bears are in active. Technically, the index has given trend line breakdown with negative candle as well as on the hourly chart index is forming lower top lower bottom set-up which indicates correction on the cards. Now the Index is heading towards 6200 – 6140 – 6100 levels which is cluster support. On the Elliott wave perspective “Irregular Flat” pattern is progress & it could end at 6100 – 6050 level. Index is trading below 20 & 40 hourly EMA i.e. 6283 & 6277 respectively. The daily & hourly oscillator has given negative crossover, which signs that continuation of bearishness.

Banking, Auto and Metal segment looks weak & we could expect for further weakness. Bank Nifty support is placed at 11650 - 11450. Resistance is placed at 11750 – 11870. Overall, bearish trend is progress. Unless violation of 6300 the index could fall towards 6200 – 6140 - 6100 levels. Fresh traders can sell at CMP with a stop loss of 6300 for the minimum target of 6150 – 6140.

Tech Mahindra - Follow Up

I did a post on Tech Mahindra in 29th July 2013, Click here to read the old post. I mentioned that Tech Mahindra is heading towards 1470 - 1700 levels. Recently high made 1763. Traders can book partial profit  at CMP (1715) or revise stop loss to 1600 and hold for the next target of 1950 - 2000 levels.

 

Infotec Ent - Follow Up

I did a post on Infotec Ent in 4th December 2013, Click here to read the old post. I mentioned that Infotec Ent is heading towards 285 - 295 levels. Recently high made 299. Traders can book partial profit  at CMP (293) or revise stop loss to 285. 

Eveready - Follow Up

I did a post on Eveready in 21st November 2013, Click here to read the old post. I mentioned that Eveready is heading towards 32 - 33 levels. Recently high made 35.7. Traders can book partial profit  at CMP (34.55) or revise stop loss to 33. 

Infotec Ent - Ball Is In Bull's Court

Infotec Ent (CMP: 275.05) - is displaying a positive outlook on the daily chart. The stock has given trend line break out with strong positive candle on the hourly chart which signs bulls are in active. On the daily chart the stock has tested rising trend line support level as well as 20 Day EMA and then bounced from there which indicates trend remains up. Now the stock is heading towards 285 - 295 levels which is cluster resistance level. The strong support level placed at 263. On the daily chart as well as hourly chart RSI has given positive crossover which signs strength.

Recommendation: Traders can buy at CMP or buy on dips to 273 - 269 levels with a stop loss of 263 (Closing basis) for target of 285 - 295 levels.

Renuka Sugar - Bounced From Cluster Support

Renuka Sugar (CMP: 21.2) - is displaying a positive outlook on the daily chart. The stock has fallen sharply from the intermediate top (24.5) and now it has taken the support of 19.5 level. The price has tested the  cluster support as well as 100 Day EMA & bounced from there with strong positive candle which indicates bulls are in momentum. The stock has given bullish triangle break out on the hourly chart. The stock is trading above 20/40 EMA which shows positive sign. Now the stock is heading towards 22.5 – 23.5 levels which is cluster resistance level. The strong support level placed at 19.9.     On the daily chart RSI has given positive crossover which signs strength.

                       

Recommendation: Traders can buy at CMP or buy on dips to 20.95 – 20.5 level with a stop loss of 19.9 (Closing basis) for target of 22.5 – 23.5 levels.

Nifty - Stays In Consolidation Mode

Nifty (CMP: 6201.85) - The action formed an indecisive candle with less volume which signifies tug of war between bulls and bears / lack of momentum. Technically, index has tested pitch fork upper line but doesn’t break that line and then finally closed below that line with small reversal candle which indicates bulls are loosing their momentum. For the day support at 6140 is crucial; as long as it holds the index could consolidate between 6140 – 6230 levels. While if the support at 6140 is breached, the index could correct lower towards 5970 – 5850 levels. Further bullish momentum is only above 6230 level. Index is trading above 20/40 hourly EMA. The daily oscillator placed in neutral, but hourly oscillator has given negative crossover which suggests that minor correction can be seen.

Oil & Gas segment look steady for further upside. Bank Nifty support is placed at 11250 – 11125. Resistance is placed at 11400 – 11500. Overall, volatility is likely to remain. The trend remains up even though one should look at some profit booking at higher levels. 

DJIA - Continuation Of Bullish Momentum

DJIA (CMP: 16086.4) - is showing bullish outlook in the medium term perspective.

The above chart is not exactly correlating with the S&P 500, But in the last few years directional moments are similar in direction. After the top out at October, 2007 both the charts are more similar in nature.

The price is forming higher top higher bottom set-up which indicates the bulls are continuing their momentum. The index is moving within the rising channel line (Blue line) which is a vital bullish setup. This bullish setup is intact from March, 2009. Within the broader channel; price has found new directional channel (Red dotted line).  The index is sustaining above all key moving averages. Short term key moving average of 50 Week EMA is placed at 14877 levels.

Recently the price has breached the “Running triangle” (Blue Dotted) which is a significant bullish indication for in the short term and bulls could continue towards the cluster resistance of 16500 – 17000 levels (Two channels upper lines). Key bottom is placed at 14700 which is the end “wave e” leg in the running triangle. The weekly oscillators are placed in overbought zone.

Conclusion: Unless violation of 14700, the bulls could continue the rally towards the upper resistance line of both the channel lines; the levels are placed around 16500 – 17000 levels. 

S&P 500 - Heading Towards 1900 - 1950

The S&P 500 (CMP: 1805.38) - The index is showing bullish outlook in the medium term perspective.

The price is forming higher top higher bottom set-up which indicates the bulls are continuing their momentum. After the breach of earlier lifetime high of 1576 the index has moved into the new bullish territory and moving with sturdy bullish stance. In the past when the index has made the new lifetime high on October 11, 2007 but the price has not sustained in the higher levels. Instead of that it started falling and made the lower bottom at 666 levels (Earlier key bottom at 768).

In the present scenario, Price has sustained and heading towards the north substantially.

Technically, the index is moving within the rising channel line (marked dotted blue line) which is a vital bullish setup. Price is sustaining above all key moving averages and crossover of 20 – 40 EMA also placed with positive bias. Short term key moving average of 21 Week EMA is placed at 1718 levels.

The change of polarity line (Gary line) could act as support for the bulls, and the level is placed around 1725. This level approximately coincides with 21 Day EMA.  The weekly oscillators are placed in overbought zone.

Conclusion: Unless violation of 1725/1718 levels, the bulls could continue to rally towards the upper resistance line of the medium term pitchfork setup; the levels is placed around 1900 – 1950 levels.

DAX - The Ball Is In Bull's Court

DAX  (CMP: 9405.3) - The index chart shows the bullish outlook for the Medium term perspective.

On the Elliott Wave Perspective, the index is forming an “Impulse pattern” from the low witnessed at 2188 on March,2003. Internals of impulse pattern could be labeled as i-ii-iii-iv-v. In which index has completed the “wave i & ii”. Now “wave iii” is in the progress and it has moved near to the 100% projection levels “wave i” & “wave ii”. On sustained rise and close above 100% levels (9570) the index could continue the rally to next key projection level of 11000 mark which is 123.6% of “wave i” & “wave ii”.

Index has formed higher top higher bottom in the swings which indicates that the present rise is sturdy and it could continue further in the medium term perspective. The minor rising channel setup (Dotted Blue Line) adds strength to the bulls.

Index is trading above 13 Month EMA & acted as vital support which is placed at 8219.  The monthly oscillators are placed in positive zone.

Conclusion: The index is heading towards 9570 then 11000 levels. Key support is placed at 8219.

Hang Seng - Heading Towards 24990 - 25500

Hang Seng (CMP: 23881.2) - The chart shows the bullish outlook for short to medium term perspective.

Multiyear triangle breakout has been witnessed on weekly chart which has taken the index into new medium term bullish territory.

In addition to this “Inverted Head & Shoulder pattern” breakout has been witnessed which is a significant bullish reversal pattern. This pattern’s target is placed around 28000 levels which is 100% level of head. Minimum 60% move we rely in the target side which approximately comes around 24990 – 25500. This level is also confluence with the earlier swing witnessed on November,2010.

Price is forming higher top higher bottom formations on weekly charts; this adds strength to our bullish stance.  Index is trading above key moving averages on the weekly chart. 50 Week EMA is placed at 22360.

Support level is placed at 22360 – 21465. The weekly oscillators are placed in positive mode.

Conclusion: The index is heading toward the levels of 24990 – 25500. Key support level is 21465.

Nikkei - Cluster Resistance Placed @ 16000 - 16500

Nifty - Upside Capped 6300 - 6357 Zone

Nifty (CMP: 6176.1) - The above chart shows the bullish outlook for the short to medium term perspective.

The index has bounced from the cluster support of 5970 levels.  Price has formed sort of double bottom at the level of 5970 levels.  The level is confluence with 21 WEMA and median level of pitchfork (Blue line).

Price is forming higher top higher bottom set-up on weekly charts which is a sign of bullish stance.  In the perspective of Elliott wave theory “Flat Pattern” (a-b-c) is progressing. “Wave a” has ended at 5970 level and now we are in “wave b” which is sub-divided into three wave structure. “Wave b” could completed at around 6260 – 6300 – 6357 levels. After completion of “wave b”, then “wave c” will open for the downside target of 5970 – 5850 levels.

From the recent price developments and formations indicates that the index is heading towards lifetime highs of 6357 levels. Before breaking the life time high, we may see a correction. There is very less chances to break the life time high. So, Traders can use the rise as a book profit opportunity & wait for fresh momentum. The weekly oscillators are placed in positive mode.

Conclusion: The trend remains up & heading towards 6260 – 6300 levels. Long traders can book profit at 6260 – 6300 – 6357 levels or revise stop loss to 6120 level & hold. Traders can initiate short positions at higher levels.

Gold - Heading Towards Upper Channel Line

Gold (CMP: $1251.9) -  is showing bearish outlook for the short term and bullish outlook for the medium term perspective.

Gold is in the progress of  major “wave b/x” , “wave a/w” has ended at $1180 on june,28.

The major “wave b/x” is three wave structure which can be “Flat pattern or Double Combination pattern”. Intermediate “wave b/x” has retraced more than 61.8% retracement level of intermediate “wave a/w”. Now wave b/x could completed around $1200 - $1180 levels which is sub-divided into (a-b-c) zig zag pattern. After the completion of intermediate “wave b/x” then “wave c/y” could rise toward $1433 (Top of minor “wave a/w”) to $1500 or more.

In the short term the price is moving within the smaller downward sloping channel setup (Marked dotted blue line) which is a bearish sign for gold. The price is forming a lower top lower bottom on the weekly chart, which adds move strength to our bearish stance.  In addition weekly oscillators are placed in favor of bears.

Conclusion: Gold could fall towards $1200 - $1180 levels. After tested $1200 - $1180 levels, it will head towards $1433 – $1500 in medium term perspective. 

Crude Oil - Correction Could Compet $90 - $88 Zone

Crude Oil (CMP: $92.7) - is showing bullish outlook for the short-term perspective.

The price has almost reached the support zone. It has moving in contracting manner in the last couple of years. The full price development from May 2010 to till date is a sort of symmetrical triangle in which one more rising leg is unfolds.

In the short term the price is moving within the smaller downward sloping channel setup (Marked dotted blue line), which is a bearish sign for crude. Once the channel is breached then we may see sharp up move and the price would start retracing the last falling leg. Breakout above 95 could confirm the rising leg. The golden retracement levels of 38.2%, 50% and 61.8% are placed at 99.5 – 102 – 104.5 levels respectively.

The standard Bollinger band study is suggests that crude could bottom out soon. The multi-month (Blue Line) also suggests that crude could resume the uptrend after testing 90 – 88 levels. This level is confluence with the trend line support.

200 Week EMA is placed around 91.45. The weekly oscillators are placed in negative zone.

Conclusion: Cluster support level placed at $90 – $88 band. Once it has tested $90 - $88 levels, then crude oil would resume the pullback towards $99.5. Investors can use this dips as a buying opportunities.

USDINR - Expect Pullback Towards $63.9 - $64.85

USDINR (CMP: 62.3) -  pair is showing bullish outlook for short to medium term perspective.

The price is forming higher top higher bottom set-up on weekly chart which indicates that the odds are in favor of USD. Last two weeks the pair has formed Doji/Hammer pattern which is a significant bullish reversal pattern. This pattern holds the USD and adding the strength to the USD for short term.

From the median line support of $60.5 the pair has turned to bullish territory and started retracing the last falling leg. The golden retracement levels of 38.2%, 50% and 61.8% which are placed at $63.90 – $64.85 – $65.81 levels respectively. The pair has already tested the 38.2% levels of the last falling leg. Unless violation of $60.5 levels, the bullish bias could continue toward 50% & 61.8% retracement levels of last falling leg.

The price structure is looks like a Head & shoulder pattern on weekly chart, now the pair is in the right shoulder of the pattern. The neckline is placed at $60.5 level.  But the confirmation comes only fall below $60.5 level.

The pair is trading above 21 Week EMA which is placed at $61.39 levels.  In addition the weekly RSI is holds the key trend line along with the head and shoulder pattern’s neckline on the price.

Conclusion: The pair is heading toward $63.90 – $64.85 – $65.81 levels for the cluster support level of $60.5. Investors can use the dips as a buying opportunity.

EURUSD - Heading Towards 1.41 - 1.43

AUDUSD - Minor Correction Unfolding 0.89 - 0.88

Dollar Index - Pullback On The Cards

Dollar Index (CMP: 80.6) -  is showing mildly bearish then bullish outlook for the short-term perspective.

The price is moving within the multi month channel setup and the price has reacted exactly to the channel lines in the past (marked with Arrows). Falling wedge pattern breakout has been witnessed few days back, which is a significant bullish trigger. One major corrective leg has ended with falling wedge pattern. Now the Dollar index is in fresh bullish leg. The price has started retracing the earlier fall from the high of 84.83 to the low of 79.13. Golden retracement levels of 38.2% - 50% and 61.8% are placed at 81.33 – 82 and 82.7 levels respectively. 

The price has already retraced slightly more than 38.2% retracement level of last leg which was marked as “wave a”. Now Dollar INDEX is in the middle of “wave b”. The corrective leg could end any where from CMP to 80 levels. Once the falling leg completes then price would head toward 50% & 61.8% retracement levels placed at 82 – 82.7 levels.

Conclusion: US Dollar Index could correct mildly then it will rise towards 82 – 82.7 levels later on. 

US 10 YR Treasury - Bounced From Support

Colgate Palmolive - Buy

Nifty - On The Way To 6260 - 6300

Nifty (CMP: 6176.1) - The Nifty Traded in the range between 6183 - 6103. The Nifty gain 84.25 points over the day to close out at 6176.1. Yesterday as the index opened minor gap up and risen continuously & made an intraday high of 6183 where it found cluster support. Finally index closed near to the day’s high. In last report we have mentioned that If the resistance level of 6130 breaks, then index could travel towards 6190 – 6210 levels and that played out perfectly &High made 6183.

The action formed a strong bullish candle with decent volume which signifies bulls are in active. Technically, on the hourly the index has given bullish triangle break out with positive candle which adds strength to bullish stance. Now the index is heading towards 6260 – 6300 levels which is cluster resistance levels. Traders can use this rise as book profit opportunity. Index is trading above 20/40 Day EMA. The daily & hourly oscillator has given positive crossover which suggests that index could rise towards historical high.

The US markets look steady for further upside. Bank Nifty support is placed at 11150 – 11030 level. Resistance is placed at 11300 – 11440 level. Bank Nifty is heading towards 11440 – 11730 levels. Overall, the index remains up and it’s likely to rise towards 6260 – 6300 levels. Traders can book profit at those levels or revise stop loss to 6120.  

TV 18 - Bull's Ride

TV 18 (CMP:22.4)  - is displaying a positive outlook on the daily chart. The stock is trading within rising channel set-up which signifies trend remains up. The stock has tested trend line support level & bounced back with strong bullish candle which indicates continuation of bullish momentum. The stock is trading above 20/40 EMA which shows positive sign. Now the stock is heading towards 24.25 – 25.25 - 26 levels which is extension levels. The strong support level placed at 21.5.  On the daily chart RSI has given positive crossover which signs strength.

                       

Recommendation: Traders can buy at CMP to 22 level with a stop loss of 21.5 (Closing basis) for target of 24.25 – 25.25 - 26 levels.

HUL - Bounced From Cluster Support

HUL (CMP:589.75) - is displaying a positive outlook on the daily chart. The stock is trading above 200 Day EMA which indicates medium trend is up. The stock has tested cluster trend line support level and bounced back as well as falling wedge pattern break out has been witnessed with strong bullish candle which indicates bullish on the cards. Now the stock is heading towards 615 - 635  - 645 levels which is 38.2% - 50% - 61.8% retracement level of 685 to 568.8 levels. The strong support level placed at 567. On the daily chart RSI shows multiple leg of positive divergence which signs bullish reversal.

Recommendation: Traders can buy at CMP or buy on dips to 587 – 583 levels with a stop loss of 567 (Closing basis) for target of 615 - 635 - 645 levels.

Nifty - Make or Break

Nifty (CMP: 6091.85) : The action formed an indecisive candle with decent volume which signifies tug of war between bulls and bears / lack of momentum. Expiry ended with high volatility. Technically, the index has tested lower pitchfork line (marked as red color) and bounced back with bullish candle on the hourly chart which indicates pull back on the cards. If the trend line resistance level of 6130 breaks, then index could travel towards 6210 – 6260 levels which is 100% - 123.6% projection level of a - b. The daily oscillators are placed in neutral, but the hourly oscillator’s has given positive crossover which suggests that index could break the resistance. For Elliott Wave perspective we need little more price development to confirm the future roadmap.

Bank Nifty support is placed at 10890 – 10750 level. Resistance is placed at 11250 – 11400 level. Bank Nifty is heading towards 11315 - 11515 levels. Overall, index has consolidated between 6030 – 6130 levels. Traders can buy above 6130 for the target of 6210 - 6260 levels with a stop loss of 6030. We need a confirmation of break out or break down. 

Nifty - Bear's In Different Avatar

Nifty (CMP: 6115.35) - The action formed a strong bullish candle with decent volume which indicates bulls on the cards. Technically, Nifty has tested 61.8% retracement level (6121) of last falling leg and closed below that retracement level which signifies 6121 is crucial resistance level. If the resistance level of 6121 breaks, it’s likely to move towards 6160 – 6170 zone which is falling trend line resistance level. Once index will test those levels, then the index could fall towards 6020 – 5970 – 5900 levels.   The daily oscillators are placed in neutral, but the hourly oscillator’s has given positive crossover which indicates minor bounce back can be seen in intra-day.

Overall, unless violation of 6215, trend remains down. Fresh traders can sell on rise at 6160 – 6170 zone (or) Sell at CMP for the target of 6020 – 5970. Short traders can keep the stop loss 6225 (closing basis) and hold.

Evereaday - Bull's On The Cards

Eveready (CMP: 27.35) - is displaying a positive outlook on the daily chart. Higher top and higher bottom set-up is progressing which signifies trend remains up. Last week the stock has given trend line breakout with strong positive candle & now that trend line acts a crucial support which indicates bullishness continuous. Now the stock is heading towards 32 - 33 levels which is upper line. If the near term resistance level of 28.15 breaks, then the stocks will rise towards 30 level in short term. The strong support level placed at 25. On the weekly chart RSI has given positive crossover which signs strength.

                       

Recommendation: Traders can buy at CMP or buy on dips to 27.15 – 26.75 level with a stop loss of 24.5 (Closing basis) for target of 32 - 33 levels.

Nifty - Well Begun Is Half Done

Nifty (CMP: 5999.05) - The action formed a falling window candlestick pattern with high volume which indicates continuation of bearishness. Technically, the indices are now close to the mentioned updated support/target of 5970, which is hugely important. If the support level of 5970 breached, then index will fall further towards 5900 – 5850 levels. If failure to sustain below 5970 levels, we may see minor bounce back up to 6070 – 6100 levels. Use the rise as selling opportunities. The daily oscillator’s has given negative crossover, but the hourly oscillator’s are placed in oversold zone which indicates minor bounce back can be seen in intraday.

Recommendation: Overall, unless violation of 6215, trend remains down. Traders can start book profits at short positions or revise stop loss to 6030. Fresh traders can wait for a rise up to 6070 – 6100 levels & use that rise as selling opportunities for the target of 5900 – 5850 levels with a stop loss of 6215 (closing basis). Strategy will be at sell on rise.

Nifty - Ball Is In Bear's Court

Nifty (CMP: 6122.9) - The action formed a strong negative candle with high volume which indicates bears are active. Technically, the index has breached 61.8% retracement level of recent falling leg which is placed at 6195, but it doesn’t sustain above that level and fallen sharply which indicates selling pressure in the market.  Now the index is heading towards 6010 – 5970  - 5900 levels for short term. An addition the index has given trend line broken down on the hourly chart as well as trading below 20/40 Hourly EMA which confirms trend is down.  The daily & hourly oscillator’s has given negative crossover which sign of weakness.

Recommendation: Investors may sell Nifty at the current levels as well as on rise at 6140 – 6160 zone, with a stop loss at 6215 (closing basis) and for the target of 6015 – 5970 - 5900 levels.

 

Nifty - Follow Up

I did a post on Nifty in 14th November 2013, Click here to read the old post. I mentioned that Nifty is heading towards 6110 - 6151 levels. Recently high made 6212. Traders can book full profit  at CMP (6195). Support level placed at 6150.

Hind Dorr Oliver - Buy

Nifty - Pullback on the cards

Nifty (CMP: 5989.6) : The action formed an indecisive candlestick pattern with decent volume on the daily chart which signifies tug of war between bulls and bears. Technically, on the daily chart the index has tested lower trend line support level (blue color) & bounced from there which indicates pullback on the cards. Cluster support level placed at 5950. If the index is sustained above 5950, Index will head towards 6110 – 6151 levels which is 38.2% - 50% retracement level of 6343 – 5972 levels. The daily oscillator’s shows neutral, but the hourly oscillator shows multiple leg of positive divergence which signifies pullback can be seen.

Recommendation: Traders can buy at CMP or buy on dips to 5980 - 5970 with the stop loss of 5950 (closing basis) for the target of 6110 – 6151 levels.

Cadila Healthcare - Buy

Cadila Healthcare (CMP: 715.65) : The above weekly chart shows the stock has reversed from cluster support zone with couple of reversal candle which indicates pullback on the cards. On the weekly chart RSI has given positive crossover which sign of strength. Now the stock will rise towards 837 which is middle red line. 

Investors may buy the stock at the current levels as well as on declines, with a stop loss at 641 (closing basis) and target of 837. A breakout past Rs.837 would lend further momentum to the uptrend and the stock could then test the major resistance at 875.

EID Parry's - Bulls Ride

EID Parry (CMP:150.1) - The stock has tested lower channel line support level & bounced back with strong positive candle on the monthly chart which signifies bounce back on the cards. Now the stock is trading above 200 Day SMA ( 146.1). An addition on the daily chart, the stock has given falling trend line break out which suggests that fresh bullish momentum. RSI has given positive crossover which signs strength.

Cluster resistance level placed at 155. Once 155 surpassed, it's likely to rise towards 175 - 195 levels for medium term. Support level placed at 125.

Recommendation:  Investors can buy on dips to 143 - 135 levels for the target of 175 - 195 levels with a stop loss of 125 (closing basis).

Nifty - Pullback On The Cards

Nifty (CMP : 5873.85) The action formed a long lower shadow candle with decent volume which indicates bullish reversal. Yesterday we have mentioned that If failure to sustain above 5940 we may see further selling pressure towards 5800 level and that played out perfectly and low made 5811.Technically, The index has tested cluster support level and bounced back with bullish reversal candle which suggest pullback on the cards. Once the resistance level of 5900 surpassed, then it’s likely to rise towards 5975 – 6030 levels which is 50% - 61.8% retracement level is taken from 6143 – 5811 levels. Traders can initiate the long position only above 5900, for the target of 5975 – 6030 with a stop loss of 5811.  But overall short to medium trend is still down for the target of 5750 – 5640 levels which is 38.2% - 50% retracement level is taken from 5118 – 6143 levels.. The hourly oscillator has given positive crossover which indicates strength.

EURINR - Bounce Back On The Cards

EURINR (CMP:84.95) : The below weekly chart shows the pair has trading with in the rising channel set up. The pair has tested rising trend line support and also taken at 38.2% retracement support which suggests that bounce back on the cards. An addition long lower shadow candle stick pattern has formed last week with decent volume which signifies bullish reversal. Overall, the pair is heading towards 89.15 level with the support level of 82.25 (closing basis).

The below daily chart shows the pair has reversed from cluster support (40 day EMA, Rising trend line support & retracement support) with reversal candle which indicates near term bottom has been formed and now bounce back has started. The pair will rise towards 86.65 - 87.91 - 89.15 level which is 38.2% - 50% - 61.8% retracement level of last falling leg.

Recommendation: Investors can buy at CMP or buy on dips to 83.75 level for the target of 86.65 - 87.91 - 89.15 with a stop loss of 82.25 (closing basis).

USDINR - Ball Is In Bull's Court

USDINR (CMP: 62.23) : The above monthly chart shows Elliott wave counts of USDINR. On the Elliott Wave perspective major a-b-c three wave structure is progressing (marked as blue color). Now we are in wave v of wave iii of wave iii of wave c and it could move towards 70 – 71 levels, which is upper channel line resistance level.

Now we are expecting the new intermediate impulsive leg (5-3-5-3-5) which will test towards 70 levels which is 200% extension level of wave I and wave II (marked as blue color).

On the Monthly chart, RSI has placed at positive zone which shows strength.

Unless violation of 58, the pair is heading towards 70 – 71 levels for medium term perspective.

The above daily chart shows the pair has fallen sharply and has tested the rising trend line support level and now bounced back with reversal candle which indicates bullishness could continue. It has also taken a support at 38.2% retracement level which acts as a crucial support for short term i.e. 61. Now the pair is heading towards 67 – 68 levels which is median line channel level.

On the daily chart, RSI has kissed the lower channel line level & now it’s bouncing back and moving towards upper channel line level which suggests strength.

Recommendation: Overall, USDINR is heading towards 70 – 71 levels with the support level of 58. 

Nifty - Ball Is In Bear's Court

Nifty (cmp: 6012.1): The action formed a strong negative candle with high volume which indicates bears are in active. Technically, the index has tested the upper pitch fork line and fall sharply with high volume which suggest selling pressure in coming days. The day before yesterday gap has almost covered and now the index is trading above the crucial support level i.e. 5925 which is rising trend line support level. If that trend line support breaches then it’s likely to test towards 5750 – 5640 levels which is 38.2% - 50% retracement level is taken from 5118 – 6143 levels. Unless violation of 6170 the trend remains down and the strategy will be at sell on rise. The hourly oscillator shows multiple leg of negative divergence which signifies weakness.

Lupin - Follow Up

I did a post on Lupin in 29th August 2013, Click here to read the old post. I mentioned that Lupin is heading towards 811 - 835 levels. Recently high made 865. Traders can book partial profit  at CMP (861) & revise stop loss to 829. Now the bull continues towards 901 - 917 level.

Ajanta Pharma & IPCA Lab - Bull's Court

IPCA Lab - is displaying a bullish outlook on the daily chart. The stock has tested cluster trend linesupport & reversed with strong positive candle and also it has taken from the 100 day SMA which indicates bull's ride has started. on the daily chart; the RSI indicator shows multiple leg of positive divergence with its price, which is the sign of strength. Now the stock is heading towards 701 - 735 levels. Support level placed at 615.

                

Recommendation: Traders can buy with a stop loss of 615 (Closing basis) for target of 701 - 735 levels.

Ajanta Pharma - is displaying a positive outlook on the daily chart. The stock has tested lower trend line support level & bounced back with strong positive candle on the daily chart and on the daily chart; the RSI indicator shows multiple leg of positive divergence with its price, which is the sign of strength. If that resistance level of 845 breaks, then the stocks will rise towards 975 - 1010 which is 50% - 61.8% retracement level of last falling leg. The strong support level placed at 765.           

                

Recommendation: Traders can buy with a stop loss of 765 (Closing basis) for target of 975 - 1010 levels.         

Kotak Bank - Bounced From Cluster Support

Kotak Bank (CMP: 659.6) The weekly chart shows the stock is moving within the rising channel set-up for last 4 years. The stock has kissed the rising trend line support level as well as median line level which suggest that bounce back on the cards. Valid support level placed at 588.

And an addition, 100 week SMA act as a crucial support which is placed at 603. On the weekly chart, stochastic shows multiple leg of positive divergence which shows bullish reversal.

Recommendation: Traders can buy at CMP (or) on dips to 655 - 645 levels with a stop loss of 603(closing basis) for the target of 723 - 755 levels.

USDINR - Elliott Wave Analysis

USDINR (CMP: 66.55) On the Elliott wave perspective major a-b-c three wave structure is in progress which is marked as wave a-b-c.  Now we are in wave iii of wave C and it could move towards 70, which is 200% extension level of wave i & wave ii (marked as blue color). But Short term we can expect minor correction towards 63.5 – 62 levels, which is 38.2% - 50% retracement level taken from the low of 53.6 to the high of 68.8 levels and use that dips to as a buying opportunities for the target of 70. On sustained above 70, then the pair will rise further towards 72 – 73 levels. On the monthly chart RSI has given a triangle breakout and placed in positive zone which shows bulls ride.

Recommendation: Investors can wait for a dips to buy at 63.5 – 62 levels for a target of 70 with a support level of 58 (closing basis).

Lupin - Reversed From Cluster Support

Lupin (cmp: 769.3) - is displaying a positive outlook on the daily chart. The stock has tested the multiple trend line support level & bounced back with bullish engulfing candlestick pattern on the daily chart and on the daily chart; the RSI indicator shows multiple leg of positive divergence with its price, which is the sign of strength. On the hourly chart, the stock is trading above 20 & 40 hourly SMA. If that resistance level of 775 breaks, then the stocks will rise towards 811 - 835 levels. The strong support level placed at 741.                           

Recommendation: Traders can buy at CMP to 765 levels with a stop loss of 741 (Closing basis) for target of  811 - 835 levels.         

Silver$ - Follow Up - 28.5% Return

I did a post on Silver in 22nd July 2013, Click here to read the old post. I mentioned that Silver is heading towards 25 - 27 levels. Recently high made 25.11. Traders can book partial profit  at CMP (25) & revise stop loss to 23.75. Now the bull continues towards 27 level.

Jindal Steel - Follow Up - 17.5% Return

I did a post on Jindal Steel in 12th August 2013, Click here to read the old post. I mentioned that Jindal Steel is heading towards 240 levels. Recently high made 247.80. Traders can book partial profit  at CMP & revise stop loss to 221. Now the bull continues towards 259 - 265 levels.