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.