Weekly technical Analysis for week ended 2^nd  November 2014

Nifty this week continued from what it left over last week, last week being a truncated week not much could not happened.This week started on Monday with slightly red candle and what followed thereafter was something spectacular. It opened 8064 made a low of 7985 and made a high of 8330 and closed at 8322. The close was virtually at the high of the week clearly indicating that bulls have won hands down and the way it raised it indicates that we are in for a further upsides in the market. During the whole week the market stayed above 20 day EMA which is a positive sign and by the end of the week the gap between the two is more than 300 points so we can expect some cool off period and then start the up move. The market made an all time high and the way it moved above the previous high with a force and also very good volumes indicates that we have some way to go before any meaning full correction can be effected.We would see the probable targets in elliott wave explained below.

Elliott wave update

It appears that we are in the third of the fifty wave of the overall third wave of the larger wave-C. As the market did not go below the previous weeks low. Now we can safely assume that we have completed wave-ii at 7723 and we have started the wave-iii which has a target of around 8570 at-least for the current wave which I have also indicated in the last weeks update and as of now also this target remains same. If this is taken out then we have all chances of seeing movement above 9000 levels in coming months. We have to keep a wait and watch on the market at every step. I would also work on other indices of NSE and try to post the same in the coming weeks to see what nifty midcap and CNx-200 and CNX-500 are indicating. So as of now bulls are ruling and it makes sense to be long in the market rather than trying to catch on the corrections.

May All be peacefull and Happy

M.Mahiidar

Enjoying Life

Trend is Friend.