Waves.India – Up but topping

Conventional thought means every time market makes new high, give it attention. Elliott thought does not agree with this. We are counting the move up from Mar 2009 low as a potential counter trend (W) – (X) – (Y) – (X) – (Z). When markets make such a corrective, new high ceases to have much significance. A marginal high does not mean much.
The latest WAVES.INDIA makes further up but topping case with the following three reasons. First: The Elliott structure. The broad market indices and most of the sector indices show a clear primary corrective structure up with prices in the final corrective (Z) leg up. The few which have a different formation are forming ending diagonal patterns and are now in the final intermediate (5) leg up. We have illustrate BSE Auto here and FMCG sector index on slide 10. Second: Sectoral divergence is a sign of potential trend reversal. CNXIT turned back from key anticipated resistances at 6,200 levels and the overall structure suggests another push lower till previous (4) intermediate wave support levels at 5,500. Third: RSI intermediate momentum is not only non confirming since March but is diverging above 70. Failure swings are valid above 70 levels. This all suggests an exhausting upmove confirming our preferred negativity.
Our latest Waves. India report carries intermediate, minor and subminor perspectives on the broad market and sector indices and subminor Anticipated and Happened cases on Nsebank and BSE Oil.
Enjoy the latest WAVES.INDIA

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‘Performance cycles’ is a term coined by Orpheus Capitals. This is another name for time triads, time arbitrage, time fractals but expressed in terms of relative performance. It’s a bounded oscillator that moves from 1 to 30. 1 is top relative performance and 30 is worst performance. The idea is that performance is cyclical. A top performer will underperform in future and vice versa. A top relative performer is also the worst value pick and the top relative underperformer is the best value pick.
ORPHEUS INDIA RESEARCH
WAVES.IND is a perspective product published on Tuesday and Thursday. The report highlights Indian Stock Market top sectoral Indices and Sensex (BSE 30) viz. BSEOIL, BSESC (Small Cap), BSEMC (Mid Cap), BSEHC (BSE Health Care), BSEPHARMA (Pharmaceuticals), BSECG (Capital Goods), BSEBANK (Banking), CNXIT (Technology), BSEFMCG (FMCG), BSEAUTO (Auto) etc.. The product also covers all the 30 Sensex components. The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers.
COVERAGE: REUTERS RICS. INDICES. .BSEBANK, .BSEOIL, .NSEI, .BSECG, .BSESN, .BSEAUTO, .CNXIT, .NSEBANK, CITc1, IFc1, .NSEBANK
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