Weekly technical Analysis for week ended 2^nd January 2015

New Year, seems to have bough cheers to market and in the first two days it has been bulls all the way with banking stocks leading the way. Nifty opened at 8240 made a high of 8410 and finally closed at 8395. As the market closed at the high range of the market we can surely say that bulls are ruling the market at-least for the short term. On Friday nifty once again moved above the 20 day EMA successfully and without any hitch which is clearly indicating that it did not offer any resistance. Considering this now 20 day EMA becomes the support level for the market. Nifty has taken support exactly at the 100 day EMA indicating that the 100 EMA is offering good amount of support also. Going forward also it seems that the 100 day EMA should be pivotal point around which the trend of the market is determined. The movement of the market on Friday is clearly indicating that in the coming week the market has all the chances of moving up till it stays above the 20 day EMA. One point to be noted is that generally January is not good month for the market, but till the price indicates, but till the price is moving up we can comfortably be with the bulls.

Elliott Wave Analysis:

 As far as Elliott wave is concerned there is not much change in the structure and it seems that market is following exactly as indicated by me in my last week’s update.   As indicated in my last week’s update the I have indicated that we might be forming an expanding triangle and it seems to be following in the same steps. The structure would remain intact till the market indicates otherwise. As far as expanding triangle is concerned the “E” wave would be the longest wave which is clearly indicating that we might see a new high in coming weeks, so we can expect the nifty to move above the all time high of 8626 so wait for the event to happen till its proven otherwise. Any major change in the movement of the market as per Elliott would be indicated immediately. So enjoy the bull run till it lasts.

May All be Peaceful and Happy

Mahiidar M

Enjoying life

Trend is friend.