Market Analysis With Megh Mody

Yesterday we had published an article on Bharti Airtel by saying that its last leg on upside is over and has started next move on down side which can move down till 300. We were very accurate in capturing this move as Bharti Airtel today made a low of 301 in the first hour of trade. Daily Chart of Bharti Airtel on 19 th August 2013 Daily Chart Bharti Airtel Anticipated Happened on 20 th August 2013 Note: Daily chart not updated on 20 th August 2013 We had mentioned in our previous article, that the stock has broken many supports and has completed a distribution pattern on smaller time frame which can lead prices lower till 300 levels.

Bharti Airtel was one of the out performers in Tele Com sector like R Com, Tata Com etc. Looking at the current structure we can say that it has completed its last leg on upside and has started its down move. This is only possible with the help of advance technicals like Elliott wave counts and Fibonacci Retracement to provide support and resistance levels. Bharti Airtel Daily Chart Analysis From the above daily chart we can observe that prices from August 2012 were impulsive in nature and made a top in early January 2013 at 370. Thereafter prices are moving in a corrective manner. Impulsive move is very easy to identify as compared to corrections. We have placed Elliott wave counts to identify the next move of Bharti Airtel. The stock completed its last leg at 354 levels and has started its down move. The stock was facing the resistance of 78.6 % retracement of the previous down move (370-266) even simple technicals like Adx has given fresh sell signal on

Elliott wave Principle and Gann analysis both are different and unique. Thus both technical theories work very well in today’s market. Here we will not see the practical application of the theories but the difference between them 1.     Elliott Wave Principle says that in an impulsive wave there should be 5 waves in which 3 waves decide the market direction and 2 waves are just the reaction. Whereas Gann analysis says that in order to know the trend of the market on the upside there should always be 3 section more than 3 section can be utilized as an opportunity to create short positions. From the above chart we can come to a conclusion that more than 3 section will suggests that the trend of the market is not going to sustain and there are high chances for the market to reverse. This is one of way to catch a top or the bottom.

Nifty Mid Cap is moving in a down trend by forming a lower high and a lower low formation. On 31 st of July 2013 prices broke its crucial support of 1802 and moved lower till 1722 as on 2 nd August 2013. This clearly suggests that prices are negatively poised and has the tendency to move lower. To justify our view we have used advance technical tools to find out the desired support and resistance of this index. We have used Gann Fann and have placed it on the top made on 9 th January 2013 from there on prices have moved below 1x1 line which is a very crucial to identify the support and resistance. Currently prices are below this line which clearly suggests that it is facing the resistance of this line. As far as prices move below this our favored view for this particular index is negative and can move lower till 1550 levels. Nifty Mid Cap Daily Chart We will not be publishing the method to forecast in this article

It is very essential to know the range of a particular Index, stock or commodity for trading perspective. In Infosys we can come to know that the stock was moving in a big range of 3000-2100 from past 2 years. Many analysts believe that such a rise in IT sector is due to US Dollar getting strong, but if this was the case how can we manage to know that Infosys is going to break its upper extreme that is 3000. In our previous article we were very accurate in mentioning the level of this stock as it can move till 2800 when the stock was quoting at 2400 levels. This time we have come out with advance technicals such as Gann Analysis to predict the level for this IT stock. Infosys: Daily Chart Analysis From the above daily chart we can observe that prices have take out its previous high of 3000. This is an important high as prices were moving in a range of 2100-3000 from past 2 years. We have predicted the

We have been accurate in capturing the move of Nifty when it whipsawed from the 5600 and later opened with a gap up which was unfilled. We captured the trend only with the help of advance technicals such as Gann analysis and its master calculator Square of 9; again we used simple technicals such as channels, retracement to predict the support and resistance for this index. Other oscillators such as Daryl Guppy has given a buy signal along with moving average of 20 EMA and 50 SMA has given a bullish crossover which opens positive possibilities for this index. As far as 5905 is protected on downside our bias continues to be positive for Nifty. Using square of 9 technique we found the date where the trend of Nifty changed which we have explained below. The below chart explains the use of square of 9. Nifty Daily Chart Analysis Nifty made a low on 10 th of April 2013 at 5477 and then it moved higher and made a high of 6229 on 20 th May 2013. To predict the fut

Nifty has completed first section and is now heading towards its second. It is always easy to remember like this to avoid confusion. As we are aware that there are only 3 section, a possibility of 4 th will either make a double top or any other formation which will help us to initiate fresh position. We have used Square of 9 technique which is a master calculator in identifying the change in trend, its swing and change of date. We have shown this in the chart where we have come to the conclusion that Nifty can rally further till 1 st Of August 2013. Also we have used speed angles to justify our self that how much price can move higher with the help of this angle. Analysis: As mentioned above after completing section 1, the index is moving in section 2 which proves that it has ample of space to rally further. Second most important thing is we have calculated Price with time again a very important indicator to foresee the change in trend. This was only possible with