WAVES.INDIA – PREFERRED B OR ALTERNATE 4
The main question now is how deep will be the ongoing retracement? If we are looking at a forming B, get ready for levels much below 4,000. While if we are looking at a 4 wave, 4,000 key supports should hold. Why is 4 an alternate for us?
There are a few reasons. First the 2 wave is not a classic Zigzag. Second, the 3 wave up can be subdivided as an A-B-C and not just as a clear impulse. Third, SENSEX performance cycles are suggesting weakness against DOW and other Global Indices. To expect a 4 here would mean strength not weakness.
About Head and Shoulder, neckline breach and retest. These are conventional interpretations and real markets have no rule regarding neckline retests. For us the only head and shoulder that matters is the one on time. We will write about it shortly.
Meanwhile we have added the performance tracker which illustrates the performance between NIFTY and NSEBANK. While the markets were crashing the last few days, the pair made a net performance of 6%. We have also enclosed likely down targets and key levels.
Enjoy the latest WAVES.IND
* This is a perspective product and not a strategy product. Long Short strategies are not riskless strategies. Please mail us for a detailed working or consult a local financial risk manager.
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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