Monday, 20 October 2014

NIFTY weekly analysis for 20 October’14 to 24 October’14


Elliott wave theory: Weekly wave pattern is still weak but it is on support zone. 38.20% retrenchment support comes at 7774 and weekly closing is almost on dot. It may invite consolidation. I issued a buy from 7750-7760 zone itself.
Market cycle: We saw dip of six weeks in a row. Take a note that we are on Diwali week now. History suggests that market wants to maintain main trend near Diwali. Hence, buy dip. It is another short week with just three trading days.  
Technical indicators: I am less worried about technical indicators now.  It comes to zone where consolidation is good and most expected. This consolidation will give buy from low.

Charting pattern: As long as it is below 7850 we cannot say for pain to be over. I hope that it will break higher above 7850. I am expecting 7900-8000 by this on Nifty. 

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