Earning Wave

NIfty closed slightly below its 200dma(11135) at 1126. We can say that 200dma support has breached. Need to watch today's price action to get more clarity on direction. Next crucial level to watch today is at 11060, where 61.8% retracement exists. Bears get more active on breaking this support. Hence, 11060-11135 range is crucial support zone for Bulls to stage a rebound. Once this support breaks, then panic selling likely to emerge in Market. Technical Indicators in clearly in Selling Mode. Hence, high probability favoring to breaking down this support zone. Many individual stocks too breaking supporting trendlines. Keep strict stoploss to long positions. Resistance 11235-11250-11300. Support 11060-10950. Regards, Suryadev Bandari Research Analyst www.earningwave.com

    Bulls failed to hold 11380 support. Gap Filled and Closed. Nifty filled gap and closed below gap level 11380. Intraday nifty tested 11248 level this is indicating intensity of selling pressure and depth of fear among traders. Nifty likely to test next crucial supports 11264- and 11184 levels from here. As Bulls failed to hold 11380 support on Tuesday, they run for next crucial supports 11264 and 11184 to hold. Never Buck the Trend. Never try to catch the falling knife. Many stocks breaking 52 week lows and moving lower. When market is in selling mode, no need to get panic. Traders need to protect longs with stoploss orders and minimize loss wherever possible. Fresh investors need to wait till this correction over. SIP method best suits to invest in this kind of market. Resistance 11550-11600 Supports 11264-11184. Regards, suryadev bandari Research Analyst www.earningwave.com

Last week Nifty formed exhaustion gap and after that formed Bearish Harami pattern and failed to cross 11700 resistance. In weekly charts, nifty formed High Wave Candle pattern, indicating that Bulls and Bears strength equalised at current levels last week. Now this week we need to watch 11416 level on lower side and 11696 on Higher side for further directional movement. Whichever side nifty breaks, one side momentum comes in that direction. Technical indicators in Sell Mode, so  higher probabilities are favoring downside momentum to resume. Hence, market in sell on Rise mode. Resistance 11700, Support 11416. Close below 11380 would trigger fresh selling pressure in Market. Bulls need to protect 11380 crucial support to take nifty higher. Bears need to protect 11700 resistance to stop upside momentum. Regards, Suryadev Bandari Research Analyst www.earningwave.com

Nifty bounced back strongly on back of Major news announcement of Cut in Corporate Tax on Friday. Today nifty retraced 61.8% of entire fall. As of Now, wave 2 in finishing stages.  More possibility for Wave 3 down to begin any time soon. Hence, Be cautious. Its time to reduce long positions. Profit booking time. From current levels, nifty likely to retest 11000 levels anytime. Short term top made. New highs may not be possible from here. Keep booking profits in long positions. Wave 3 Impulsive Down move can begin any time. Regards, Suryadev Bandari Research Analyst www.earningwave.com

NIfty moved exactly as forecast in last update. Yesterday Bulls failed to hold 10850 support level and nifty closed well below that level. Today, In opening also Bulls failed to hold opening gap up. Most preffered wave count suggesting that IRREGULAR TRIANGLE completed and Impulsive down move has started. Next downside level to watch is 10750. Market in Sell on Rise Mode. 10875 first resistance and 10975 strong resistance. Minor support 10750. Regards, Suryadev Bandari Research Analyst www.earningwave.com

Nifty formed Bearish Engulfing pattern in daily charts and today in bearish continuation pattern. Banknifty yesterday formed Doji near 200dma and today it formed Evening star formation. Both indicating that short term bounce has ended yesterday and down move to continue from hereon. 10900 in nifty crucial for bulls. Keep strict stoploss to long positions. Regards, Suryadev Bandari Research Analyst.

Possible Irregular triangle in finishing stage. Once this triangle completes, then we will see swift impulsive down move in market. Upside capped at 11141-11045 range. Crucial support to watch today is 11000 spot, once this level breaches, then we will get indication of possible trend reversal. Keep strict stoploss to long positions as we expecting swift trend reversal anywhere between 11045-11141 zone. Resistance 11045-11141 Support 11000, 10960. Regards, Suryadev Bandari Research Analyst