Tata Power: Bang on using Elliott wave and Bollinger Bands

 Elliott wave and Neo wave helped in catching a top in Tata Power in advance when no one expected it.

After bad quarterly results, stock crashed by more than 10% in just 4 sessions but if you check the trend was already matured and was expected to reverse on downside by applying Technical analysis methods along with Elliott wave in our Equity research report.

Tata Power Daily Chart Anticipated as on 8^th May 2024Wave analysis as on 8^th May 2024

In the previous session, Tata Power formed a big bearish candle and lost more than 2%. Stock gave a close below previous day’s low which keeps the tone on the negative side as long as we do not see a close above previous day’s high.

On the above chart, we can see that after reversing from the upper bands of the Bollinger Bands®. Prices have completed its journey towards the mid bands. Now a close below it is must for further selling to resume. Stock is currently trading at the channel support a close below it can accelerate further selling pressure. As per wave perspective, wave (v) looks to be completed on the upside. But for confirmation follow up selling is must. So, all the signs are suggesting weakness in this stock

In short, Tata Power looks bearish. A break below 430 can drag the price lower towards 415 as long as 445 holds on the upside. 

Tata Power Happened Daily Chart as on 13^th May 2024Happened: We can see in the first chart; the up move was matured and we anticipated a possibility of a correction on downside as the stock was probably completing wave (v) higher. Elliott wave is GPS of the market. It helps to understand the maturity of trend and if it’s time to sell. The second chart shows that after breaching below 430 levels, stock achieved out target of 415 and moved way lower by making a low of 396.5 which is more than 10% move from our mentioned levels within just 4 trading sessions!

In a nutshell, the above research clearly shows how by understanding Elliott wave and Neo wave one can forecast stocks that seem to be driven by news or events but the GPS of the stock gave a warning signal much earlier.

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Nifty Target using Head & Shoulder pattern with Elliott wave! BANG ON!

 Nifty is moving precisely as per the technical analysis pattern of topping Head & Shoulder. When prices were near 22300, we forecasted targets of 21970 levels.

Combining this pattern along with Elliott wave and Neo wave provides strong forecasting ability.

The below chart of Nifty was shown on 10^th May 2024 when prices gave breakdown of the pattern which is picked up from the Daily equity research report.

Nifty hourly chart anticipated as on 8^th May 2024

Waves analysis: Anticipated as on 8^th May 2024

Nifty opened on a flat note for the second straight day, in previous session. During the day, prices showed sharp selloff. At the end Nifty ended lower with a loss of -0.62 at 22302 levels.

In the previous session, FMCG sector gave breakout of the consolidation. Along with this, IT also gained good momentum towards the end of the session. These two sectors were the only sectors which were amongst the top gainers, when Nifty fell more than 270 points during the day. Amongst the stocks, HUL surged more than 5%. Along with this, Tech Mahindra, Britannia and TCS were also amongst the top gainers in Nifty. On the other hand, Broader indices closed in red for the second consecutive day. PSU Bank, Auto, Pharma participated in the fall.

India VIX jumped to 17 and it is currently trading at crucial resistance a breach above 17.5 can result into further rise in VIX. This suggests fear amongst investors amid elections.

In the previous session, Nifty satisfied 3 candlestick rule conditions and gave a close below previous day’s low, low below previous day’s low and high below previous day’s high. This is suggesting that short term trend has changed to negative. On the daily chart, Nifty gave a close below mid band. Now with follow up selling we can expect a move towards lower bands which is near 22070 in coming sessions.

On the hourly chart, Nifty gave a breakdown of the topping Head & Shoulders Pattern. Target as per this comes near 21970 levels. As per wave perspective, after completing wave g on the upside fresh leg is unfolding on the downside.

In a nutshell, Nifty gave a close below previous day’s low. For now, a break below 22200 can accelerate further selling pressure which can drag the price lower towards 22100 followed by 22070 levels.

Nifty hourly chart Happened as on 10^th May 2024

Happened: Prices moved precisely as expected and made a low of 21932 levels which was achieved in the previous session which is a move of more than 400 points in just 2 trading sessions.

For now, trend remains sell on rise with the targets of 21880 or lower. While on the upside 21240 is the nearest resistance.

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SUPREMEIND – Massive Move by Combining Rounding Bottom with KST

 Sometimes simple price pattern along with price indictors creates wonder if one combines it together! See by yourself how we identified such a massive move in SUPREMEIND using KST (Know Sure Thing).

One can effectively capture significant movements in stocks. See how we chose SUPREMEIND, a stock that has increased by over 15% in short span of time, especially when market is choppy. 

We published the following research on SUPREMEIND pre-market on 30^th April 2024 in "The Financial Waves Short Term Update” which our subscribers receive pre-market every day.

SUPREMEIND Daily chart Anticipated as on 30th April 2024

SUPREMEIND Hourly chart Anticipated as on 30^th April 2024
Wave Analysis as on 30^th April 2024

SUPREMEIND has been moving higher recently and intact in strong uptrend. In the previous session it closed with a gain of 14.21%.

On the daily chart, in the previous session prices formed a bullish candle. Price has closed above 4750 level which confirm breakout of the rounding bottom pattern. KST has turned above signal line and also trading above the zero line which is a positive sign. We can expect good momentum to continue in this stock.

As shown on the hourly chart, we have applied parabolic SAR which used to determine the price direction as well as draw attention to when the price direction is changing. A series of dots placed below the price which is deemed to be a bullish signal. Closest support is placed at 4650.

In short, trend for this stock is positive. Use dips towards 4850-4900 as a buying opportunity for a move towards 5450-5500 levels as long as 4650 holds on the downside

SUPREMEIND Happened as on 9^th May 2024

Happened: The stock moved as we anticipated. SUPREMEIND have given breakout of Rounding Bottom with good volumes. After a dip, prices showed a sharp rise and achieved our target of 5500 and made high of 5538 on 7^th May 2024 which is more than 15% from the dips in just 5 trading sessions.  

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Multibagger Stock: Godrej Properties up by 60% in just 6 months!!

 We published about Godrej Properties in November 2023 and predicted the possibility of Multibagger returns in coming 2-3 years. Check out the below research we had published on 24th November 2023 itself –

This stock has managed to hold its gain and gave more than 60% returns in 6 months of span and made a life time high of 2912 levels.

Godrej Properties Weekly Chart Anticipated as on 24^th November 2023 with 53 period Time Cycle

Multi bagger stock recommendation: Godrej Properties

Buy Price – Buy at CMP 1845 more on dips

Time Horizon –2 to 3 years

Investment – 5% of capital

Target price –??

Stop loss - ??

Anticipated as on 24^th November 2023 – Elliott Wave Theory:

As can be seen on the weekly chart, prices have moved from the lows of 159.15 towards the high of 2499 in a small period of 7 years. Post the formation of a high near 2499, the price corrected in the form of wave 4. Wave 4 got completed near channel support which was near 1000 levels. Price is currently moving upward in the form of wave 5         

Stock has been forming lows every 53 Weeks as per this cycle and we can clearly see that in above chart. According to this cycle, the stock has formed lows every 53 weeks, as shown in the chart above. The blue line represents the 53-week time cycle, and we can see a sharp bounce back on the upside when prices are near that level. Recent low was also captured by our cycle from where a sharp bounce on the upside was witnessed.

Godrej Properties Daily Chart Happened as on 8^th May 2024

Happened– The stock has been moving in sync with our expectations. After a minor dip, the stock has shown sharp rise on the upside which is overall 60% from the lows in just 6 months of span!!! It has touched its fresh record high near 2912 levels recently and currently it is quoting near 2770 levels. The overall up move has been strong and we expect prices to achieve its target of...levels in coming months.

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Nifty Power of Elliott - Neo wave with KST indicator

 Elliott wave and Neo wave is GPS of the market that helps to forecast the probable path prices can move.

KST indicator helps to understand the momentum.

Open interest profiles shows the area where big players are creating their positions.

Nifty hourly chart:

Elliott wave analysis – Nifty hourly chart shows the entire rise post completion of wave x at the lows of 21200 in the form of 7 legged corrective pattern. This is not an impulse rise as it does not follow the basic impulse rules. The entire rise is in Diametric pattern. Neo wave defines this pattern as corrective that consists of 7 legs and labelled as a-b-c-d-e-f-g. Post completing wave x looks like the entire rise is complete in the form of Diametric pattern and we can start seeing pressure on prices. However, along with forecast it is important to get 2 stage confirmation as per Neo wave as well.

2 stage confirmation technique – this is a powerful method that confirms if the top is formed and we have started seeing the reversal. In diametric pattern, we need to see faster retracement below the d-f trendline and 2^nd stage is obtained when the entire wave g is retraced faster. This will happen below 21800 levels. But for traders one has to pre-empt by looking at smaller time frame patterns to enter much early with good risk reward.

Now, breach below 22350 will form classic lower high lower low formation as per Dow theory and will indicate an early sign for wave g to be over for much lower levels to come.

This will remain valid unless we see move back above 22800 levels that formed double top formation as well.

KST indicator – This indicator shows slower momentum as there is negative divergence between prices and indicator. Also the KST line has moved below 0 suggesting a possible momentum can pick on downside if support levels break.

In a nutshell, Neo wave is suggesting Nifty is in matured stages of up move. We were able to capture the entire up move and now we are warning for impending top to form for few days or weeks and lower levels can be expected once the support near 22350 is broken as long as 22800 holds on upside.

Subscribe to daily equity research report – Get access to The Financial Waves short term update and see yourself the ongoing wave patterns with complete research, levels on Nifty, Bank Nifty, stocks with trade opportunities – know more

Sutra of Waves - Learn the science of trading Options and stocks along with Elliott wave, Neo Wave, Fibonacci Trading system and Ichimoku cloud in upcoming live event on 1st - 2nd June 2024. Also get access to Online Options Trading strategy in entire Trishul program. know more