Bottom Line: Nifty managed to protect the lows of 8688 so far and showed some pullback. Short term trend can be sideways to positive.

Transcription

1 September 29,2016 Bottom Line: Nifty managed to protect the lows of 8688 so far and showed some pullback. Short term trend can be sideways to positive. Nifty daily chart: NIFTY - Daily Open , Hi , Lo 83.15, Close (0.4%) EMA(Close,20) = 8, , days Time Cycle (e) 8, ,800 8, ,600 (d) (f) ,400 8,200 b 8,000 a 7,800 7,600 7,400 c (y) 7,200 7,000 (z) A ,800 NIFTY - RSI(14) = Feb Mar Apr May Jun Jul Aug Sep Created with AmiBroker - adv anced charting and technical analysis software. 1 Mob:

2 The Financial Waves Short term Update September 29, 2016 Nifty 60 mins chart: NIFTY - Hourly 28/09/2016 4:29:59 PM Open , Hi , Lo , Close (-0.0%) EMA(Close,20) = 8, alt: a c 9,000 e 8,900 (e) a b 8688 d alt: b 8, ,800 8, ,0 8,600 (d) (f) ,500 8,400 8,0 NIFTY - RSI(14) = Aug Sep Created w ith AmiBroker - advanced charting and technical analysis softw are. w w.amibroker.com Wave analysis: In previous update we mentioned that..nifty has closed near important zone yesterday. Move below pivot low of 8688 will resume the downtrend whereas any move back above 8768 can result into sideways to positive action. Momentum from here on will also be important Nifty had a positive opening in previous session and prices continued to gain steadily throughout the day. Stock specific action has continued with outperformance coming from Metal, Auto and PSU Banking space. This time private sector banks have been laggards whereas PSU banks were resilient during the fall and has now started showing positive attempt as soon as index stabilized. Nifty managed to protect the lows of 8680 and bounced back in previous session which highlights the importance of this region. Also the daily RSI has again arrived near the important support level which has been protected in the entire rally from So for any negative confirmation we need a strong decisive close below the support of Failure to do that can result into a positive attempt. As shown on hourly chart, the fall so far has been lacking the momentum which is why we showed the alternate possibility of a Flat correction. Prices came close to the support level of the red channel and we can now expect a pullback towards the level of 8900 which is the channel resistance. Close above 87 followed by 8800 will confirm start of wave c on upside in form of a Flat correction. Most of the up moves over past many months have lasted for around 3 to 5 days. We can expect this wave c to take around similar time and it will be important to see if it can get truncated near 8900 or manages to reach near previous highs. This scenario will remain valid as long as we do not see strong momentum below the red channel support near zone. In short, some consolidation can be expected at current levels. Decisive break above 87 followed by 8800 will open up short term trend towards 8900 or higher. On downside is going to be crucial support. 2 Mob:

3 Canara Bank daily chart: The Financial Waves Short term Update September 29, 2016 CANBK - Daily Open 2.7, Hi 313.9, Lo 2.5, Close (2.6%) EMA(Close,20) = x 100.0% % 50.0% 38.2% Copyright,September % y 150 CANBK - RSI(14) = Apr Jul Oct 2016 Apr Jul Created with AmiBroker - adv anced charting and technical analysis software. 3 Mob:

4 Canara Bank60 mins chart: The Financial Waves Short term Update September 29, 2016 CANBK - Hourly 28/09/2016 4:29:59 PM Open , Hi , Lo 312.4, Close (-0.2%) EMA(Close,100) = CANBK - RSI(14) =.35 com Jul Aug Sep Created w ith AmiBroker - advanced charting and technical analysis softw are. w w.amibroker.com Wave analysis: We have been mentioning from last few updates that Bank Nifty is moving under pressure due to the fall witnessed in stocks like Axis Bank and ICICI Bank and during the same time entire PSU Banking stocks were moving in sideways action. In last session some positive attempt from lower levels was witnessed in Indian Equity Markets in which PSU Bank sector gained more than 2.4%. We have picked up Canara Bank which has given breakout from the consolidation of last few days. The daily chart shows that in the month of May 2016 prices completed intermediate wave y and post that intermediate wave x is ongoing which is corrective in nature. The entire rise is intact in upward moving channel and 20 days Exponential moving average is providing vital support. From last 11 sessions stock was moving in narrow range and in last session prices have formed bullish candlestick pattern along with increase in momentum. This suggests that upside trend has resumed. As shown in 60 mins chart, stock has retraced the last leg of down move in faster time which suggests that minor wave has completed in form of Triangle pattern and next leg on upside has started in form of minor wave. On downside 298 will act as important support. In short, Canara Bank trend is positive with crucial support at 298 level. On upside prices can move towards 3 level. 4 Mob:

5 The Financial Waves Short term Update September 29, 2016 Cipla daily chart: CIPLA - Daily Open 608.7, Hi 612.4, Lo , Close (0.2%) EMA(Close,20) = 588. v x 100.0% 750 iii % iv 50.0% w 38.2% ii CIPLA - RSI(14) = % y Apr Jul Oct 2016 Apr Jul Created with AmiBroker - adv anced charting and technical analysis software. 5 Mob:

6 Cipla 60 mins chart: The Financial Waves Short term Update September 29, 2016 CIPLA - Hourly 28/09/2016 4:29:59 PM Open 606.4, Hi 608, Lo 605.8, Close (-0.2%) EMA(Close,80) b a c 500 y CIPLA - RSI(14) = Created w ith AmiBroker - advanced charting and technical analysis softw are. w w.amibroker.com Wave analysis: Jun Jul Aug Sep In Pharma space stocks like Cipla and DR.Reddy has been showing relief sign from last few months and correcting the prior down move. Cipla has been moving higher in corrective fashion and important supports are still intact on downside which will keep trend positive. The daily chart shows that from the start of June 2016 intermediate wave x is ongoing. Intermediate wave y formed double correction pattern and hence we can witnessed prices to retrace towards 61.8% of the prior down move. There is some loss of momentum on upside however as long as support areas are intact on downside trend will remain positive. From last 6 weeks prices have been protecting the low of prior bar on closing basis so as long as this continues trend will be bullish. As shown in 60 mins chart, prices are in minor wave of second standard correction which is testing channel support along with 80 period s Exponential moving average. On downside 585 can act as important support and move above 620 level will suggests that next leg on upside has started. However as the rally is corrective, one should closely watch the momentum. In short, Cipla is in consolidation post the up move. Break of 620 will resume trend towards 650 level where channel resistance is placed. 6 Mob:

7 The Financial Waves Short term Update September 29, 2016 HDFC daily chart: HDFC - Daily Open , Hi 1432, Lo , Close (0.8%) EMA(Close,40) = 1, ,500 1,450 1, ,400 1, ,350 1,0 1,250 1,200 1,150 1,100 1,050 1, HDFC - RSI(14) = Apr Jul Oct 2016 Apr Jul Created with AmiBroker - adv anced charting and technical analysis software. 7 Mob:

8 HDFC 60 mins chart: The Financial Waves Short term Update September 29, 2016 HDFC - Hourly 28/09/2016 4:29:59 PM Open , Hi , Lo , Close (0.1%) EMA(Close,200) com ,500 1,480 1,460 1,440 1, ,420 1, ,400 1,380 1,360 1,340 1,320 1,0 1,280 1,260 1,240 1,220 1,200 HDFC - RSI(14) = Jul Aug Sep Created w ith AmiBroker - advanced charting and technical analysis softw are. w w.amibroker.com Wave analysis: HDFC is one of the outperformer stocks from Finance index. This stock touched the high of 1464 level in the first week of September 2016 and post that range bound action is ongoing. The daily chart shows that the rally started from 2016 managed to break above the downward moving channel before few months and rallied towards 1464 level. The basic techniques like channels and moving average has been working well. The rally ongoing since April 2016 is still intact in upward moving channel and as of now consolidation is ongoing near the support of channel. Apart from that 40 days Exponential moving average is acting as crucial support and hence action from hereon will be crucial to watch. As shown in 60 mins chart, prices have respected 200 periods Exponential moving average from last few months and recently bounce back was witnessed from the same. However momentum has not yet picked up and it is important for prices to move above 1445 level with strong momentum. On downside 1390 is the support. In short, break of 1445 will suggests that trend towards 1485 level has started with 1390 as important support. 8 Mob:

9 The Financial Waves Short term Update September 29, 2016 Services offered by : Stay ahead at major turning points and think objectively by Subscribing to our Services: Equity / Commodity / Currency research reports that are published on daily basis before market opens Intraday / Positional advisory on Equity and Commodity Research report and advisory on Currency pairs Global Market forecasting Research on Mutual Funds - Where to Invest NOW? Research on COMEX and LME markets Research on NCDEX Agri products We also provide: Outsourcing Research solutions Portfolio advisory services Conduct Educational seminars, Class room training, and Distance learning modules. Disclosures: ( Firm ) is SEBI registered as a Research Entity in terms of SEBI (Research Analyst) Regulations, SEBI Registration number: INH The Firm, its partners, employees, and associates have not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market. The Firm, its partners, employees, and associates including the relatives of the Partners, do not hold any financial interest/beneficial ownership of 1% or more in the company subject to research analysis ( Subject Company ); do not have any material conflict of interest with the Subject Company; has not received any compensation or monetary benefit of any nature from the Subject Companyduring the past twelve months; has not served as a client, employee, director or officer of the Subject Company; has not been engaged in any market making activity for the Subject Company has not received any compensation for brokerage services from the subject company in the past twelve months This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. The Firm does not represent/ provide any warranty express or implied to the accuracy, contents or views expressed herein and investors are advised to independently evaluate the market conditions/risks involved before making any trading or investment decision. Each recipient of this document should make such investigations as they deemed necessary to arrive at an independent evaluation of an trading / investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. The Firm, its affiliates, directors, partners its proprietary trading and investment businesses may, from time to time, make investment decisions. The views contained in this document are those of the Firm and the research analyst engaged in preparing the research report, and the client may or may not subscribe to all the views expressed within and the client has the right and option to not follow or put reliance on recommendations they are not agreeable to. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. 9 Mob: