Market Analysis With Megh Mody

In our previous article on 10 th March 2014 we had mentioned that, “Using Elliott wave analysis we came to the conclusion that this index is going to underperform in coming months which can drag this index till its previous pivot low. Failure to protect this low will further infuse selling pressure. The index is quoting above the extended upward sloping lower trendline which has been providing support to this index from October 2011. Till now this support has been intact but sooner or later it may breach this support zone. We can also observe that, prices faced the resistance near 61.8% retracement of the previous down move (24,111-21,197). Now the next support is its previous pivot low which is around 21,200 levels.”- Bulls Eye. We were very accurate in capturing the move for Hang Seng as it faced the resistance of 61.8% retracement and moved till its previous pivot low of 21200. The index made a low of 21137 and closed near the day’s low which is not a healthy sign. Now to o

Tech Mahindra, on June 25, 2013 announced the completion of   Mahindra Satyam ’s merger with itself. Post-merger, the new entity becomes the fifth largest IT Company in the country with revenues of $2.7 billion.   Combined entity has a team of 83,000 professionals, servicing 540 customers across 49 countries. It has 15 overseas offices for BPO (business process outsourcing) operations and software development. Its revenue for 2012-13 was put at $2.7 billion (Rs. 16,000 crore). Technically, it is very clear from the below daily chart that the stock is moving up by forming a higher highs and higher lows and it is moving in an upward sloping blue channel which is a healthy sign for this IT stock. On 19 th March 2014, the stock was down but it bounced lately which clearly suggests that there was a buying seen. Using Bollinger Bands has always helped to understand the range of the asset class. These are self adjusting bands and are very helpful in a range bound market. In this stoc

The   FTSE 100 Index , also called   FTSE 100 ,   FTSE , or, informally, the   "footsie"   , is a   share index   of the 100  companies   listed on the London Stock Exchange   with the highest   market capitalization . It is one of the most widely used stock indices and is seen as a gauge of business prosperity for business regulated by   UK company law . The index is maintained by the   FTSE Group , a subsidiary of the   London Stock Exchange Group . The index began on 3 January 1984 at the base level of 1000; the highest value reached to date is 6950.6, on 30 December 1999. After falling during the   financial crisis of 2007-2010   to below 3500 in March 2009, the index recovered to a peak of 6091.33 on 8 February 2011,   fell   under the 5000 mark on the morning of 23 September 2011, but reached 6865.86 at the market close on 24 February 2014 (its highest close since 1999). From the below daily chart of FTSE 100, we can see that prices are moving precisely in an u

It is believed that USDINR will not move above 63 levels and will consolidate within the range of 60-63 by many analysts, brokers and traders. What is the story behind USDINR? To know the answer we have used Elliott Wave Analysis to know the forthcoming trend. By using this advance technical theory, it has become easy to identify the patterns and its implication. From the daily chart of USDINR we can observe that, prices has been moving in a range of 60-63 from past 5 months which has been very difficult for traders to trade in currency pair as it was moving in a triangle pattern. Triangle pattern occurs in selected waves and cannot be plotted anywhere as per the guidance of R.N Elliott. In a triangle pattern there are 5 legs (a-b-c-d-e) each comprising of 3 (a-b-c) which is a form of corrective pattern. It seems that prices have completed the last leg of triangle pattern and it is now ready to move up. The target for this pattern comes to around 67 levels. In shor

The Nikkei 225, more commonly called the Nikkei, the Nikkei index, or the Nikkei Stock Average ,is a  stock market index  for the  Tokyo Stock Exchange  (TSE). It has been calculated daily by the  Nihon Keizai Shimbun  (Nikkei) newspaper since 1950. It is a  price-weighted index  (the unit is  yen ), and the components are reviewed once a year. Currently, the Nikkei is the most widely quoted average of Japanese equities, similar to the  Dow Jones Industrial Average . In fact, it was known as the "Nikkei Dow Jones Stock Average" from 1975 to 1985. The Nikkei 225 began to be calculated on September 7, 1950, retroactively calculated back to May 16, 1949. Since January 2010 the index is updated every 15 seconds during trading sessions. The Nikkei 225 Futures, introduced at  Singapore Exchange  (SGX) in 1986,  the Osaka Securities Exchange  (OSE) in 1988,  Chicago Mercantile Exchange  (CME) in 1990, is now an internationally recognized futures index.  The Nikkei aver

The Hang Seng Index is a freefloat-adjusted market  capitalization-weighted   stock market index  in  Hong Kong . It is used to record and monitor daily changes of the largest companies of the  Hong Kong stock market  and is the main indicator of the overall market performance in Hong Kong. These 48 constituent companies represent about 60% of capitalisation of the Hong Kong Stock Exchange. HSI was started on November 24, 1969, and is currently compiled and maintained by Hang Seng Indexes Company Limited, which is a wholly owned subsidiary of  Hang Seng Bank , one of the largest banks registered and listed in Hong Kong in terms of market capitalisation. It is responsible for compiling, publishing and managing the Hang Seng Index and a range of other stock indexes, such as Hang Seng China Enterprises Index, Hang Seng China AH Index Series, Hang Seng China H-Financials Index, Hang Seng Composite Index Series, Hang Seng China A Industry Top Index, Hang Seng Corporate Sustainabilit

IDFC is been in news in Dalal Street from some time especially when there was an outbreak that IDFC has more chances to get the banking license then the other candidates. Many analysts, brokers, investors and traders are very bullish for this stock. Does news really drive the stock prices? To know the answer we used Elliott Wave analysis to get the objective answer. This advance technical analysis is very useful tool to take proper trading decisions and helps to initiate trade with proper risk/ reward ratio. From the below daily chart we can observe that prices has given a bullish break in the falling red channel which has pushed prices higher till 106 after giving break on 4 th March 2014. Is this breakout going to sustain? Or it will start its down move? We have used Elliott Wave which says that one more leg on the downside is still pending which can come very soon before the up move starts. The reason is after making a high of 117 in the month of December 2013 price