Weekly technical Analysis for week ended 19^th September 2014

During the week there appears to be a tough fight between bulls and bears in first two days bears were in control and next three days the bulls were in control. During the wee Nifty opened at 8070 made a low of 7925 and thereafter recovered with vengeance and made a high or 8160 and closed at 8121. For the week the index closed with green colour indicating that the close is higher that open and also this week’s close is higher than that of the last weeks indicating the bulls are still in control of the market as of now. The weekly candle has long tail and has formed what appears to be a hammer indicating that the bears have tried hard to take the market down but bulls have give a tough fight and were successful in taking the market up. So till the low of 7925 is violated in the coming week we can see market drifting up only. So till that happens we can expect the market to slowly and steadily inch upwards.

As far as Elliott wave is concerned nifty did not go below the low of the 4^th wave at 7855 which I have indicated in my last weeks up date. This indicates strength of the bulls. This week also we have to see whether this would be violated if this is taken out nifty has all the chances of moving towards 7540  but as of now it appears far off. But nothing can be ruled out. As of now it appears that we might have completed wave-1 and wave-2 of wave – 3 of wave-5 of larger wave-3. It is an assumption as of now the movement in the coming week has the possible chances of altering the structure. Till then we have to make this assumption. If wave-2 has completed at 7925 then we can easily see new high in the coming weeks easily. So we have to wait and watch in the coming weeks.

 Now we look at the probable targets as per elliott assuming that the wave-2 has ended at 7925. Wave -1 is of length 640 points so we can safely assume that the wave-3 would at-least be equal to that wave so we have a target of min 640 points from 7925 giving a target of 8565. But we have to wait and see whether the structure assumed is correct or not let the market give the direction. As the market moves the wave structure also evolves and suitable chances would be made to align with the wave structure.

M.Mahiidar

Enjoying Life

Trend is Friend.

September 21, 2014 5:25 PM