WAVES.INDIA – THE 13 WEEK PAUSE IS HERE
After 13 week of uninterrupted rise SENSEX has finally hit some resistance. Has it? Though 13 is a Fibonacci number with some significant symmetry what is more relevant here is that markets can not rise uninterrupted. We also had a small body indecisive candle last week, which makes the current week’s black body start not easy to ignore. The wide open gaps at 12,500 are also strange attractors that won’t let SENSEX rest in peace. TIME CYCLES that we have highlighted on prior occasions are non confirming and negative. Both preferred and alternate SENSEX counts suggest we are indeed at the top of the road for SENSEX for multi weeks even if we look at the current up move as a nine legged or W-X-Y-X-Z intermediate corrective up.
Other negatives include filled open gaps by CNXIT, failure swing at BSEAUTO, non confirming momentum on BSEOIL, BSE Health Care, BSEAUTO, first cracks at intermediate cycle top on CNXIT, cycle highs on BSEPOWER and a host of performance cycle updates.
The SENSEX VS. DOW pair has reversed suggesting SENSEX underperformance against DOW. If DOW will fall, SENSEX will fall more. SENSEX underperformance VS. GOLD, if Gold will fall, SENSEX will fall more. SENSEX underperformance VS. FTSE, if FTSE will fall, SENSEX will fall more. The latest report also carries an update on our open pair CNXIT VS. INFOSYS. We continue to hold LONG Infosys view against CNXIT.
The only positive seems the BSEBANK, which is still stuck at 8,000. Financials still seem to be holding on. Pauses are wishful thinking. Markets don’t always rise and pause, they also fall in cyclical precision.
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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