Market Analysis With Megh Mody

Tata Steel Anticipated on  6th September 2020 Tata Steel Happened on 10th September 2020 In my previous update on Tata Steel, I had mentioned that, " 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." Prices made a low of 386 thus achieving my both the targets of 410 followed by 400 levels - Anticipated Happened. Here is the link of my Tata Steel Article click on the link https://www.marketanalysiswithmeghmody.com/2020/09/tata-steel-elliott-wave-analysis.html From Waves perspective I had mentioned that, 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. Prices can down faster and marked a low of 386, this is how alteration (guidelines of impulse wave) works in impulse wave. Education Learn Technical Analysis in our 4

 Nifty daily chart Nifty hourly chart In my previous update, I had mentioned that, Nifty is expected to plunge till 11100. However, it made a low of 11185 and reversed which opens another scenario of the market direction. In the daily chart, after marking low of 11185 last week, prices rebound from the lows and closed higher at 11455 levels thus showing strength. There is no doubt that short term trend has changed from negative to positive, but this can also not be ruled out that the medium term trend continues to be negative. I think it is likely for the index to test the rising trend line which was earlier acting as a support and now a resistance. RSI holds the center line which gives positive sign. As shown in hourly chart, prices surged by giving bullish trend line break and also crossed its previous high (marked by horizontal black trend line) thus opening positive possibilities. Also moving above its previous high discontinues lower highs and lower lows. There is a possibilit

 ICICI Bank daily chart ICICI Bank hourly chart In the above daily chart, the banking stock is moving in a sideways trend with the extremes placed at 330 on the lower side and 400 on the higher side. The stock made an attempt to move above it and marked a high of 425, but it was short lived and thus it re-entered the range making it possible to test the lower extreme. RSI is below the center line which is a negative sign. In the hourly chart, prices are showing signs of resilience by exhibiting positive divergence in RSI. Prices have retraced more than 65 points from the top and so the possibility of a bounce back cannot be ruled out. RSI has relieved from the oversold zone and can move up from here. As per Wave theory, wave a of one higher degree is completed which opens wave b of same degree up. In which wave a is ongoing within wave a and wave b is over and so wave c is pending on the upside. The summation is ICICI Bank is set to surge till 378-380 levels where cluster of resi

 JPYINR daily continuous fut chart JPYINR hourly continuous fut chart In daily chart of JPYINR, the pair is hovering near the cluster of supports and if this support is intact there can be a bounce back which can soar prices near till resistance of the sideways trend. RSI is also showing signs of reversal all indicating that a bounce back can’t be ruled out. From hourly chart, bounce from the lower end of the support will give an indication that prices will continue to remain in this trend which will also define the resistance zone and possible exit levels. The bias from current juncture is positive. From Waves perspective, the pair is moving in (a-b-c-x-a-b-c) where it has completed wave c of second correction and from here there are two probabilities either there can be wave x coming from here of wave b of one higher degree is over at c and wave c of one higher degree will start which can move above the end of wave a of one higher degree. The summation is JPYINR is all set to s

 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.