Archives : DEEPAWALI SPECIAL - 13/10/2017.

DEEPAWALI SPECIAL.

 

HAPPY DEEPAWALI & A PROSPEROUS NEW YEAR - 13/10/2017.

 

Wishing each one of you a very Happy Deepawali and a Prosperous New Year. May all have a super successful trading year.

 

STUPENDOUS ONE WAY RALLY.

 

The current rally which started in December 2016 has been going from strength to strength as it has already seen a superlative rise of almost 7000 points on the Sensex and 2300 points on the Nifty. The upward rally has been a parabolic rise without any major Correction. The recent Correction was the first meaningful price-wise as well as time-wise Correction which started in August and seems to have concluded this week. Interestingly, the Correction tested the higher top higher bottom trajectory by testing the higher bottom (Nifty 9685). The higher bottom held strong and it resulted in validating the higher bottom. Thus, any decline below Nifty 9685 will spell bad news for the Bulls and will negate the intermediate trend.



DEEPAWALI SPECIAL.

 

HAPPY DEEPAWALI & A PROSPEROUS NEW YEAR - 13/10/2017.

 

Wishing each one of you a very Happy Deepawali and a Prosperous New Year. May all have a super successful trading year.

 

STUPENDOUS ONE WAY RALLY.

 

The current rally which started in December 2016 has been going from strength to strength as it has already seen a superlative rise of almost 7000 points on the Sensex and 2300 points on the Nifty. The upward rally has been a parabolic rise without any major Correction. The recent Correction was the first meaningful price-wise as well as time-wise Correction which started in August and seems to have concluded this week. Interestingly, the Correction tested the higher top higher bottom trajectory by testing the higher bottom (Nifty 9685). The higher bottom held strong and it resulted in validating the higher bottom. Thus, any decline below Nifty 9685 will spell bad news for the Bulls and will negate the intermediate trend.

 

PATTERN ANALYSIS.

 

On the weekly formation, both the indices had completed a Cup and Handle formation and the targets are Sensex 34677-37554 and Nifty 10536-11413. If one considers the Cup and Handle formation of 7 years from 2007 to 2014, the target for that pattern falls at Sensex 34715 and Nifty 10462. Thus in the intermediate timeframe one can expect a test of the above targets i.e. Sensex 34677-34715 and Nifty 10462-10536.

 

Nifty Cup&Handle 2017

 

STORY OF TWO BULLISH GAPS.

 

The current rally has seen two major Bullish Gaps. The first Bullish Gap is on the daily charts, between Sensex 29780-29681 and Nifty 9250-9225. It will act as strong Support. The second Bullish Gap which is more critical as it is also a Weekly Gap i.e. between Sensex 29356-29098 and Nifty 9060-8977 hold the key to the long term trend.

 

YEARLY INDEX LEVELS:

 

 

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

8860

9273

9685

10167

10462

10853

11413

Sensex

28419

29780

31081

32432

33778

35443

37554

 

DEEPAWALI RECOMMENDATIONS:

 

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy Bharat Fin

1004

884

1232

1491

Buy Gail India

437

387

532

662

Buy Kiri Ind

466

398

604

778

 

WATCH OUT FOR:

 

Bharat Fin Cup&Handle Monthly
 
Kiri Ind Cup & Handle 7 years
 
Saregama 17 years pattern

 

 

 

 

 

 

Disclaimer : The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness.

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