IDFC – Elliott Wave Analysis

Strategy:
1) The Long Term Investors can buy at current price or corrective dip to Rs 62- Rs 52 as the opportunity arises.

2) Traders who are all holding long position can maintain a stop loss of Rs 64 or exit long positions.Re- Enter long positions only on break out and close above Rs 85.

IDEA CELL – Elliott Wave Analysis

IDEA CELL – Wave c of wave (x/b) correction should be limited to Rs 60–Rs 56–Rs 55 . [ Target of wave c of wave (x/b) ]

The above daily chart shows the entire historical structure is three wave corrective structures. IDEA’s long term uptrend started from 34.05 (27 Oct 08) with a three wave corrective structure.
Wave (w/a) – Rs 34.05 – Rs 91.70.
Wave (x/b) – Rs 91.70 – Rs 60.10. [In progressing]
Now we are in wave c of wave (x/b). Wave c of wave (x/b) correction should be limited to Rs 60 – Rs 56 (RSI Oversold Zone). If the wave (x/b) is complete wave (y/c) will start moving up.

If the price is able to close above the resistance level of Rs 85, this would be the signal the wave (x/b) correction already ended, and then up move should resume for retest of Rs 91.70[This is the top of wave (w/a)]. If the wave (w/a) top is break and then would confirm wave (y/c) is progressing already. If that happens the wave (y/c) target will be at 100% - 138.% - 161.8% projection level of wave (w/a) – wave (x/b).

Support level placed at Rs 60. Once the support level of Rs 60 is violated and then the stock fall and test towards Rs 58 –Rs 56 range. This would be the last correction.
Resistance level placed at Rs 74 – Rs 78. The last week candle is slightly high which indicates the price will move with in the range between Rs 75 – 60 in couple of days or weeks.

Target:
Long term target will be at Rs 145.90 – Rs 161.
Medium term target will be at Rs 97 – Rs 113 –Rs 129.

Trend:
Medium term trend – Bullish.
Long term trend – Bullish.
Short term trend – Bearish.

Strategy:
1) Long to medium term investors can buy at corrective dip to Rs 60 – Rs 56 - Rs 55.