Weekly technical Analysis for week ended 8^th  November 2014

This week was a truncated week and nifty opened at 8348 made a high of 8365 and closed at 8337. Nifty moved in a tight range of 60-70 points indicating that the market is consolidating to gain strength after a big move previous week in order to make a good move in coming weeks. The truncated week with just 3 days trading is generally a boring market. As the entire week the market was trading in a narrow range indicating that the market wants to move up post the consolidation. The market is trading at all time highs indicating that the bulls are ruling that market. The gap between the 20 day EMA and the closing price is around 250 points which is a big gap and during the last one to two years it’s the highest (except on election result day) which is giving an indication that the market might consolidate for some days before it attempts to move higher. Even if the market move up we can easily assume that the market would correct. It is better for the market to consolidate before it makes again all time highs.

It appears that as the market might consolidate, we can expect the stocks especially the mid-cap stocks might be active and we can expect a good move in them the patterns are suggesting. In my blog I only try to indicate only the stocks which are fundamentally strong as if the stocks move is not supported by fundamentals you can also loose very fast.

As far as elliotte wave is considered there is not much change in the structure as nothing has happened during the week. It is still pointing towards the nifty movement towards 8570 levels. So we have to wait till this is achieved.

May All be peacefull and Happy

M.Mahiidar

Enjoying Life

Trend is Friend.