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 28-09-2016 Open 8711.2, Hi 8767.05, Lo 83.15, Close 8745.15 (0.4%) EMA(Close,20) = 8,760.67 9,000 54 days Time Cycle (e) 8,760.67 8,800 8,745.15 8,600 (d) (f) 8540 8,400 8,200 b 8,000 a 7,800 7,600 7,400 c (y) 7,200 7,000 (z) A 6825 6,800 NIFTY - RSI(14) = 50.14 50.1386 2016 Feb Mar Apr May Jun Jul Aug Sep Created with AmiBroker - adv anced charting and technical analysis software. http://www.amibroker.com 1 Mob: +91 9920422202
The Financial Waves Short term Update September 29, 2016 Nifty 60 mins chart: NIFTY - Hourly 28/09/2016 4:29:59 PM Open 8748.5, Hi 8751.9, Lo 8742.35, Close 8745.15 (-0.0%) EMA(Close,20) = 8,745.75 alt: a c 9,000 e 8,900 (e) a b 8688 d alt: b 8,745.75 8,800 8,745.15 8,0 8,600 (d) (f) 8540 8,500 8,400 8,0 NIFTY - RSI(14) = 47.01 47.0141 7925 18 25 Aug 8 16 22 29 Sep 12 19 26 Created w ith AmiBroker - advanced charting and technical analysis softw are. http://w 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 6825. So for any negative confirmation we need a strong decisive close below the support of 8680. 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 8650 8680 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 8680 8650 is going to be crucial support. 2 Mob: +91 9920422202
Canara Bank daily chart: The Financial Waves Short term Update September 29, 2016 CANBK - Daily 27-09-2016 Open 2.7, Hi 313.9, Lo 2.5, Close 312.4 (2.6%) EMA(Close,20) = 296.64 x 100.0% 500 450 400 61.8% 50.0% 38.2% 350 312.4 296.635 0 250 Copyright,September 2016 200 0.0% y 150 CANBK - RSI(14) = 65.47 65.4736 2015 Apr Jul Oct 2016 Apr Jul Created with AmiBroker - adv anced charting and technical analysis software. http://www.amibroker.com 3 Mob: +91 9920422202
Canara Bank60 mins chart: The Financial Waves Short term Update September 29, 2016 CANBK - Hourly 28/09/2016 4:29:59 PM Open 312.85, Hi 313.75, Lo 312.4, Close 312.4 (-0.2%) EMA(Close,100) = 2.56 298 320 312.4 310 2.558 0 290 280 2 260 250 240 2 CANBK - RSI(14) =.35 www.wavesstrategy. com 220 210 200.3468 Jul Aug Sep Created w ith AmiBroker - advanced charting and technical analysis softw are. http://w 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: +91 9920422202
The Financial Waves Short term Update September 29, 2016 Cipla daily chart: CIPLA - Daily 27-09-2016 Open 608.7, Hi 612.4, Lo 602.25, Close 605.8 (0.2%) EMA(Close,20) = 588. v x 100.0% 750 iii 0 650 61.8% iv 50.0% 605.8 600 588.2 w 38.2% 550 500 ii CIPLA - RSI(14) = 67.01 0.0% y 450 67.0054 2015 Apr Jul Oct 2016 Apr Jul Created with AmiBroker - adv anced charting and technical analysis software. http://www.amibroker.com 5 Mob: +91 9920422202
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 605.8 (-0.2%) EMA(Close,80) 640 585 620 620 605.8 601.54 600 580 560 b 540 520 a c 500 y 480 460 CIPLA - RSI(14) = 46.36 46.3552 Created w ith AmiBroker - advanced charting and technical analysis softw are. http://w 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: +91 9920422202
The Financial Waves Short term Update September 29, 2016 HDFC daily chart: HDFC - Daily 27-09-2016 Open 1418.1, Hi 1432, Lo 1417.15, Close 1423.55 (0.8%) EMA(Close,40) = 1,383.21 1,500 1,450 1,423.55 1,400 1,383.21 1350 1,350 1,0 1,250 1,200 1,150 1,100 1,050 1,000 950 HDFC - RSI(14) = 57.80 57.7996 2015 Apr Jul Oct 2016 Apr Jul Created with AmiBroker - adv anced charting and technical analysis software. http://www.amibroker.com 7 Mob: +91 9920422202
HDFC 60 mins chart: The Financial Waves Short term Update September 29, 2016 HDFC - Hourly 28/09/2016 4:29:59 PM Open 1422.35, Hi 1425.5, Lo 1420.8, Close 1423.55 (0.1%) EMA(Close,200) 1445 www.wavesstrategy. com 1390 1,500 1,480 1,460 1,440 1,423.55 1,420 1,398.74 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) = 56.25 56.2529 Jul Aug Sep Created w ith AmiBroker - advanced charting and technical analysis softw are. http://w 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: +91 9920422202
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