Weekly technical Analysis for week ended 29^th November 2014

Nifty started the week forming all time high and there after it slightly drifted downwards and there after started to move up and on Friday it moved vigorously and closed the week at all time high. Nifty opened at 8490 made a low of 8429 made a high of 8617 and finally closed at 8588. nifty has move and taken support at the 20 day EMA ( nearly) and then started to move up during the last week. This move is indicating that we might see further upsides before any correction sets in. During the last nine months nifty has been moving up and coming down and taking support at 20 day EMA and then move up this has occurred so many times and now also 20 day EMA has offered good support. Considering this we can assume that the 20 day EMA would offer support for any correction. It is at around 8378 so we are nearly 210 points from those levels. So we expect the market to consolidate slightly and then move up. RSI is at 73 levels at over bought levels and it has been maintain at those levels for last two months. The over-bought levels is an indication that the bulls are strong and any down move has all chances of being bought into till proved otherwise.

Above chart is the Elliot wave breakup of the up move which started from February 2014. All the waves are perfectly falling into place it appears that we are in the 3^rd wave of the wave-5 of larger wave-C. Elliott wave has given a minimum target of 8570 and indicated that nifty has chances of moving towards 8700 levels the first target has been achieved and we might as well progress towards the 8700 levels and we would look into further targets once 8700 levels are taken out till then wait for the targets to be achieved.

May all be Happy and Peacefull

M.Mahiidar

Enjoying Life

Trend is Friend.