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The Financial Waves Monthly Update: Nifty, Gold, Bank Nifty…

nifty wave

Following is an overview of “The Financial Waves Monthly Update” which is a 18 page report and has 12 different charts giving not only Indian but Global outlook using techniques like Elliott wave, Time Cycles, Fibonacci Projections, Channels, Sensex in Gold (real money), PE ratio,PB ratio, etc.

nifty wave

In September we saw strong pullback in Indian markets from lower levels and prices rallied by almost 3000 points on Sensex and 1000 points on Nifty. However, after approaching the multi-year resistance line which has been ending the up move since more than 5 years worked this time as well and prices finally closed the month within the body of previous month. If we ignore the closing and consider only highs and lows we can see a higher high and higher low formation. A move above …………. will be a strong positive sign. Sensex in Gold – real money gives correct picture of why majority of stocks are at new lows!
In current research we have showed Bank Nifty relative chart along with Nifty which shows that why Banking sector as a whole should ……… for months to come. …….that will be starting probably post mid 2014 …
Sensex PE ratio / PB ratioa tool many believe to be a fundamental measure but for us it provides more of technical perspective and helps to understand how markets have been trending along with it.
On currency front, when everyone was panicking we have mentioned 70 levels as very important as it is 1.618 * wave i and we can clearly see prices stopped its uptrend near this level and formed an inside monthly bar. This indicates there is halt in the …..
International precious metals both Gold and Silver has formed a monthly inside bar and should also continue to move sideways for digesting the multi-month down move. This time we are showing Silver long term chart and why this metal should also underperform along with Gold. The euphoria has slowly subsided in previous metals along with Indian currency as well.
US markets have not been doing much and all the negative news about US Government shutdown has not impacted their markets at all. In fact S&P500 closed positive by more than half a percent when the concerns were looming about US default a probability if they fail to raise the debt ceiling. It seems US stock market is not too concerned about what economists believe about Government shutdown and debt, after all for us markets are supreme and news is just a technical indicator.
This time our stock pick from Indian markets is Capital Goods heavy weight L&T and we should have ….. value of this stock in future. Overall, September had lot of emotional flux for both bulls and bears trading Indian markets and was relatively muted for other assets most of which formed an inside bar – DJIA, Gold, Silver!!!
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