Weekly technical Analysis for week ended 27^th December 2014

Nifty during the last two weeks is in the grip of bears and during the last week it seems to be on recovery mode. We have to see whether the recovery sustains or not. Nifty has moved below the 20 day EMA and also moved below the 50 day EMA and seems to have taken support exactly at the 100 day EMA. It took support exactly at the 100 day EMA and this week it tried to move above the 20 day EMA but it is facing resistance at the same and now exactly at the 50 day EMA. Any move above 20 day EMA would take the market further up and if it fails then we have all chances of moving towards the 100 day EMA which happens to be around 8055. The 20 day EMA is at 8276. So as of now 8276 should be resistance and the 8055 to be support. Any breach of these to levels would have all chances of taking the markets on a sustainable move in that direction.

Elliotte Wave Analysis:

Wave analysis of the nifty has under gone a change considering the movement of the market in the last two weeks. As the wave IV has gone into the region of wave-I( which should not happen) we have to look into the alternative wave structure which is now coming to expanding triangle which is indicated in the chart below. It seems that we have completed the wave- a to c and not it see that we are in completion of wave-d( these waves are indicated in red color) post which we might start wave-e. So in the coming week we might see an up move as the wave structure indicates. So now we have to wait and watch how the market unfolds.

Mahiidar M

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