Bears waiting to tear NIFTY apart!

Long-term technical stand for Nifty-50 index - ©batchuforecast.blogspot.com

CNX Nifty-50:

In the midst of central budgetary announcement, we are anticipating a strong Bear trend with strong bearish impulsive waves bringing the Nifty-50 index back to the popular 6,500 levels of the year 2013. The global investment scenario seems to support the statement very much. It would be a intelligent and cautious move to hedge the bearish short side stands as there could be a bullish correction happening in the short-term.

Please post your opinions or questions in the comments below!

NIFTY

CNX Nifty:

We see that the Nifty's recent up-move is an indication of the trend reversal. Also it is clearly evident that the price has completed its five waves and is in the process of following A-B-C pattern. The 8500 level is a good resistance point to put an end for the A wave. we can confirm this by watching at the over-bought zone in the RSI indicator. After the A wave, it should be heading for a retracement up to 8100 levels. Please post your opinions in the comments.

NIFTY

CNX Nifty:

We need to observe that the upcoming two weeks are the crucial decision points for the market price trend. Said that, we can anticipate a more positive outcome due to the upcoming announcements of the infrastructural and housing initiatives which are further to enhance the market forces taking the Nifty price point to 8300 levels. But, there exists a technical viewpoint with respect to the long term reversal trend formation (Head & Shoulder pattern) which given a chance would give the market a drift back of 1,000 points bearish (though highly unlikely as we can see that the price has already moved along the 3 bearish motive wave according to the Elliott Wave theory and will see two bullish motive waves soon which might help recover from this technical trap).

Please post your opinions in the comments.

NIFTY HAS A BEAR TRAP AHEAD

NIFTY

CNX Nifty:

As we are moving in the clear Elliott wave formation, we can realize that we are currently experiencing the formation of the wave 5 which will be the last bullish opportunity as per present situation which can be observed promising the 6600 level with a strong support from the below mentioned inverse head and shoulder pattern formation which supports up to 6700 level confirming the above calculation to the safe side. Also the sluggish bearish movements in the last week and positive improvements in the scrip trends as mentioned here: (http://www.chartscorner.com/nifty-shows-sign-of-recovery-in-the-derivative-segment/) makes it evident that there will be sure bullish trend in the coming half of the month. So bulls hail.

NIFTY

CNX Nifty:
Nifty has clearly showed the A-B-C pattern after a long pattern of 5 waves in last 2 years. There were two motive and one corrective wave in this pattern with 5-3-5 pattern. Immediately after the completion of the A-B-C pattern, motive after motive wave clearly implies the major trend reversal from bearish to bullish, starting the 5 wave formation again. Again we already can witness the first two waves one motive and one corrective 5-3- followed by the third wave which is still under construction and may end up breaking the year high 6229 soon through the motive wave (5) pattern as shown. So Nifty rides bulls for now.

NIFTY

CNX Nifty:
As estimated earlier, Nifty has took a down turn finally from the over bought zone. Fibonacci target is set at 5670 optimistically. Refer the support lines for fine movement projection.

NIFTY

NIFTY

NIFTY

NIFTY

NIFTY

CNX Nifty:
As per the analysis, Nifty is going to experience a good bullish trend which is a good indicator for us to go buying calls of 6100 strike to make huge profits.

NIFTY

CNX Nifty:
Also the technical indicators like RSI and DMI are in favour of a good uptrend confirming the Elliott psychology pattern as mentioned in the image. My advise is to trade the wave C using option derivatives, i.e. 5900 call when the price falls after touching the 5820 resistance.

NIFTY

CNX Nifty:
Better go for the respective strike options at right timings to earn more profits.

NIFTY

NIFTY

CNX Nifty:
Here we can witness clear-cut formation of first 5 waves of the elliott principle. Also wave A formation can be observed. Expecting a good supportive force at 5800, the price may go for formation of wave B from 5800. Further, the index will be aiming for lower support i.e. 5600 within a month as for my knowledge.

And by observing the variations of the Put options with the Nifty future price as shown in the chart, 5600Put is expected to grow up to minimum 70. Therefore, it is a very good opportunity now to go for buying 200 lots of Mar Put option derivative of Nifty at 20 and wait for squaring the positions at around 40. (i.e: 20x200(50)= Rs.2,00,000).