Showing posts from December, 2013

Reliance Power: Trading with Elliott Wave

Shares of Reliance Power were buzzing in trade on Friday as it gained 3 percent intraday. Sources said that CBI is likely to close its preliminary enquiry to probe coal block allocation in Reliance Power ’s Sasan project. Sasan power project is an ultra-mega power project with an installed capacity of 4000 MW. The first unit started producing power on March 30 while the second unit started production on December 13. The company's overall generation capacity has crossed 3,200 MW. Reliance Power is executing three UMPPs in Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand).

Does news really drive the stock prices or it is the advance technical study that has made aware that the trend is changing. 
Reliance Power Daily Chart

From the daily chart of Reliance Power, from past 4 months this stock is moving in a range of 80-66 levels. Recently it bounced from the level of 70 and it is capable in moving up till …. levels which is a very good resistance zone. MACD…

Sun Pharma: Trading with Channels

We have always given emphasis to channels, as they play very significant role in determining resistance and support levels. Channels are categorized into 2 types
·Rising channel ·Falling channel
Rising channel occurs when prices are moving up by forming higher highs and higher low formation. This means that whenever, prices protects its previous low and crosses its previous high, rising channel can drawn by joining two highs and two lows.
Falling channel can be drawn when prices starts breaching its previous low and forms a lower high. This means that prices are moving in a negative direction. Connect two tops and bottoms to from a downward sloping channel.

Daily Chart Analysis
From the daily chart, we can observe that prices are moving lower by breaching its previous lows and it is moving precisely in a falling red channel. The stock has a very good support near 560 levels which is the upward sloping blue trend line of rising blue channel.
As seen in 60 mins chart, prices yesterday faced the…

Larsen and Toubro Elliott Wave Counts and the forthcoming trend


Maruti Suzuki Elliott Wave

Maruti Suzuki is one of the out performer  auto stock just like Tata Motors, Bajaj Auto etc. The trend still looks to be positive but on 12th December 2013 the stock started correcting. It seems that it will change the trend as well. Such kind of movement is difficult to trade but with the help of Elliott wave counts it is easy to identify the reversals.
The following excerpt is been picked from our daily research report "The Equity Waves" where we have shown the possible reversals and Elliott wave counts.
Maruti Suzuki Daily chart
As shown in the daily chart of Maruti Suzuki, currently the stock is moving up by forming higher highs and higher lows which is a positive sign for this auto stock. However, the stock has arrived near the resistance of the channel. RSI has also exhibited negative divergence.
As seen in 60 mins chart, ..........................
From wave perspective, prices have probably completed wave c of double correction (a-b-c-x-a-b-c) and can move down from curren…