BSE Midcap Index - Bearish

Tech Mahindra - Portfolio Pick

Tech Mahindra (CMP:1217.25) : The weekly chart shows the long term Elliott wave counts. In the perspective of Elliott wave theory, major (5-3-5) three wave structures is progressing which is labeled as wave a-b-c. Now we are in wave iii of wave c. Now the stock is heading towards 1470 – 1700 levels which is 100% - 123.6% extension level of major wave a & wave b. Support level is placed at 1080 – 1020. In addition, Last week the stock has given a median line break out which is added strength of bulls.

Recommendation: Investors can accumulate at CMP (1217.25) to 1150 levels with a stop loss of 1020 for the target of 1470 - 1700 levels.

BSE Metal Index - Melting Down

Shasun Pharma - Portfolio Pick

Silver$ - Bounce-back towards 25 - 27

Silver (CMP:19.46$) The above quarterly chart shows fall arrested at median line support & now we will expect the pullback towards 25 - 27.

In the perspective of Elliot wave, Major impulse wave has completed and now major  three wave corrective structure is in progress. Wave a has almost completed & now we are in wave b which will be heading towards 25 - 27 level which is 38.2% - 50% retracement level is taken from 35.4 to 18.19 levels. The  . Support level placed at 18 - 17.

On the weekly chart, the RSI indicator shows multiple leg of positive divergence with its price, which is the sign of strength. 

Recommendation: Buy at CMP (19.46) for the target of 25 - 27 levels with the stop loss of 17 (Closing basis).

BSE TECK INDEX - BULLISH

Persistant - Buy

PERSISTENT is currently trading at 523.5 levels. Technically, The stock has tested multiple trend line support & bounced back with positive candle which indicates buyer are active in that zone (which is marked as yellow color in chart). If resistance level of 537 breaks, then the stock will rise towards 589 - 630 levels.  An addition, falling trend line break out has been witnessed on the daily chart which is sign of bulls.

The support level placed at 490 - 475. On the weekly chart, RSI has given positive crossover which is added strength to the bulls.

Recommendation: Traders can buy on dips to 519 - 513 levels with a stop loss of 475 (Close) for the target of 589 - 630 levels.

AUD/USD - Elliott Wave Analysis - A Follow Up

I did a post on AUD/USD in 26th April 2012, Click here to read the old post. I mentioned that AUD/USD is heading towards 0.95 - 0.85 levels. Recently low made 0.89. Traders can book profit  at CMP (0.89).

Wave C has almost complete which is confirm only above 0.94. Now we will expect the pair is heading towards 1 - 1.03 levels in medium term. 

Castrol - A Follow - Up

I did a post on castrol in 14th July 2013, Click here to read the old post. I mentioned that Castrol is heading towards 347 - 359 levels. Recently high made 353. Traders can book partial profit  at CMP & revise stop loss to cost.

Sun Pharma Advance Research - Buy

Sun pharma Advanced Research : (CMP:141.4) The stock has tested median line support level & bounced back with strong positive candle which indicates bounce back on the cards. Now the stock is heading towards 165 - 173 levels with the support level of 129.

Recommendation: Investors can buy at 141.4 to 137 levels for the target of 165 - 173 with the stop loss of 129 (closing basis).

Biocon & IGL - Portfolio picks

Biocon - Buy

IGL - Buy

IGL - is displaying a positive outlook on the daily chart. The stock has tested inverted Head & Shoulder neckline & bounced back on the daily chart and on the daily chart, the RSI indicator has showed a positive crossover with its price, which is the sign of strength. On the hourly chart, the stock is trading above 20 & 40 hourly SMA. Resistance level placed at 297. If that resistance level breaks, then the stocks will rise towards 303 – 315 – 323 which is 100% - 138.2% - 161.8% extension level of recent rise.  The strong support level placed at 285.  

Recommendation:                    

Traders can buy at CMP (291.85) to 290 levels  with a stop loss of 285 (Closing basis) for target of 303 -315 - 323 levels.

Gold - Pullback on the cards

Gold (CMP: 1291$) The quarterly chart shows the long term Elliott wave counts on Gold ($). In the perspective of Elliott wave theory, major (5-3-5-3-5) impulse wave structure has completed and now we are in corrective structure which is labeled as a-b-c. Wave a has completed and wave b (pullback) is progressing with the target of 1460 – 1550 levels which is 38.2%-50% retracement level of wave a.

Last quarter, Gold has tested 38.2% retracement level of entire bullish run and now it’s bounced back with positive candle which creates strength.

On the weekly chart, the stock has tested channel line support level and bounced back with positive candle which signifies pullback on the cards. Wave a has completed at 1180 levels and Now wave b is heading towards 1460 – 1550 levels. Support level placed at 1295 – 1270.Unless violation of 1180, the trend will be bullish.

In an addition, RSI shows multiple leg of positive divergence which indicates bullish.

Nickel - Bearish

Lead - Melting down

The above weekly wave chart indicates the bearish stance on lead for medium term.

In the perspective of Elliot wave, the whole structure from the low of 72.55 (12-Jun-10) to current level is corrective triangle pattern which are labeled as a-b-c-d-e. “Wave e of wave b”, has completed and major bearish leg on cards towards 109 which is crucial rising trend line support level. If it breaches & sustains below 109, we may see further selling pressure towards 99 which is its 61.8% extension level of Wave W and Wave X.

On the weekly chart, the RSI indicator has showed a negative crossover with its price, which is the sign of weakness. 

Recommendation: Sell at CMP (121.35) or sell on rise for the target of 109 - 99 levels with the stop loss of 137 (Closing basis).

Castrol - Buy

The stock has reversed from the median line support level with positive candle which is sign of bulls. Now the stock is heading towards 347 - 359 levels. Support level placed at 319. On the daily chart, RSI has given positive crossover which is added strength to the bulls.

Recommendation:
Traders can buy on dips to 331 - 327 levels with a stop loss of 319(close basis) for the target of 347 - 359.