Market Analysis With Megh Mody

 Nifty daily chart Nifty hourly chart In my previous update, I had mentioned that, “ Nifty is positively poised but a slight correction cannot be ruled out which can retrace till 11500 followed by wave v higher which can cross 11700 and mark 11750-11790 levels. Also if the level of 11450 is broken then an important top is in place .” Nifty broke the support of 11450 which infused selling pressure breaking all the significant supports and forming an intermediate top at 11800.- Anticipated happened In the daily chart, the index opened with a gap up on Monday and marked a high of 11800, it was unable to sustain higher and as a result it reversed on the same day. The reversal was so strong that the rising trend line which was acting as a crucial support was broken and closed below it on the last day of the week, thus giving a bearish break. Daily RSI continues to go down after exhibiting negative divergence. Nifty and Nifty Bank has formed a strong reversal candles in weekly chart, w

 Tata Steel daily chart Tata Steel hourly chart In daily chart of Tsteel, the stock is moving in a higher highs and higher lows pattern and as of now there is no discontinuation. Only a break below 410 will open negative possibilities which can drag prices way lower. Daily RSI has turned down by exhibiting negative divergence. From hourly chart, prices are moving in a rising channel and are showing signs of reversal from the resistance of the channel. It is now very much likely that the stock can test the support of the formation. From Waves perspective, prices are likely to correct in form of wave iv after completing wave iii in an extension. This wave on the downside is expected to be steeper in nature and so the fall has to be faster in comparison with time. The summation is Tata Steel is likely to falter till 410 followed by 400 in coming weeks. The stock is negatively poised and will correct to test its immediate supports. Education Learn Technical Analysis in our 4 month

 BPCL daily chart BPCL hourly chart In the above daily chart, the energy stock is consolidating in a stiff range of 420-400 levels, as far as it persists in this range, no dynamic move can be seen. It is imperative for prices to break the level of 400 decisively for prices to move down. Daily RSI is near to the center line and it has crossed it from above giving a negative sign. In the hourly chart, prices are moving in a symmetrical triangle pattern where it has completed two touch points on each trend line. All it is required is a directional move in this stock, for which a bearish break is required. RSI is also falling and is below the center line. As per Wave theory, prices have completed wave b in a triangle pattern after wave a. Now wave c will start lower which can go till 50-61.8% of wave a to wave b. There are chances for 38.2% retracement as well. The summation is BPCL is expected to plunge once the level of 400 is broken and can test 385-380 price zone over short term.

  Nifty daily chart Nifty hourly chart In my previous update, I was sure that 11520 will be the resistance but it surpassed thus negating my view of 11200 a lower level. In the daily chart, the index continues to move in stealth uptrend by crossing its previous day high and making a new one. Last week market made a new high of 11693 and closed near the high of the week at 11655. As of now prices continue to trade above rising trend line and there is no discontinuation of higher highs and higher lows which makes this index firmly positive. However, RSI continues to give whipsaws near the overbought zone. As shown in hourly chart, last week there was no correction in the index and as such there is a high possibility for a correction to come, this correction can be sideways to negative but it is unlikely to breach 11450 levels. RSI is near 70 from where overbought zone starts. As per Wave theory, after completing wave b at 11114 prices have started wave c in which it has completed w

  Larsen & Toubro daily chart Larsen & Toubro hourly chart From daily chart, prices are moving in a higher highs and higher lows, ten trading sessions back it has crossed its previous high which opens further positive possibilities. After making a high of 1026, it retraced back near to the horizontal line which was earlier acting as a resistance, will now be a support (polarity reversal).  The rising trend line is also playing a crucial role by providing support to this capital good stock. From there a sign of resilience is seen. RSI in the daily has relieved from the overbought and is set to move higher from current levels. In the hourly chart, LT was trading below the falling black trend line but on Friday it crossed this trend lie thus giving a bullish break and at the same trading day there was a throwback where it re-tested the trend line (black). MACD is positively poised and can move higher as far as it is above the signal line. As per Wave theory, prices have completed

EURINR daily continuous fut chart EURINR hourly continuous fut chart In daily chart of EURINR, the pair is moving higher in a rising wedge shape pattern which is a bearish reversal pattern. However, there is no price breakout yet, once there is a price confirmation, prices are set to falter. RSI is also exhibiting negative divergence which is a sign of caution. From hourly chart, prices are moving in a rising channel (shaded portion) indicating that the trend is firmly positive and it has arrived near the support. This support zone of 87.50-87 needs to be broken decisively which will infuse selling pressure dragging it near till 84 levels. RSI is relieving from the oversold terrain and is set to resume the downtrend once there is price confirmation. From Waves perspective, prices are moving in a leading diagonal as per Elliott Wave and terminal impulse as per Neo Wave. Here wave iv has overlapped wave ii (rule of impulse as per Neo Wave) and part of wave i (Elliott Wave) and therea

 Nifty Bank daily chart anticipated on 4th August 2020 Nifty Bank hourly chart happened on 26th August 2020 In my previous update on Nifty Bank, I had mentioned that, " Nifty Bank can reach till 23300 levels which will be immediate resistance with support at 21000 (closing basis)." Today, the index surpassed this level thus achieving the 23300- Anticipated Happened. Here is the link on my article on Nifty Bank click on it https://www.marketanalysiswithmeghmody.com/2020/08/nifty-bank-elliott-wave-analysis.html I have opened another possibility for this index as earlier I was thinking as (a-b-c-x-a-b-c) but I had also opened wave x/b in my previous article. This means that wave c on the upside was pending and so as wave a after wave x. So here wave c is quite likely as the structure looks impulsive and can move up above 25000 in coming weeks. The summation is as far as 22500 is intact on the downside, prices are likely to reach till 25300 levels in near term. Education Learn Te