Earning Wave

 Nifty completed Ending diagonal pattern yesterday and immediately taken U turn from all time High 13145.85. As we know that After an Ending Diagonal pattern there would be swift reversal , exactly that's what happened yesterday.  Surprisingly, all major sectoral indices breached crucial supports at closing time and closed below it. This is indicating that, for the time being, nifty entered into correction phase. Immediate down side targets for nifty would be 12760 and then 12530. Resistance remained at 13145. US Dowjones too formed similar pattern yesterday. It seems that, global market too getting inline for correction phase. Be alert on holding long positions. Any close below 12600 would drag nifty to more downside. Its better to book long positions at least partial profit booking. As today fno Settlement, we can see more volatility or panic moves in market.  trade with strict stoploss. regards, Suryadev Bandari Research Analyst www.earningwave.com

 Yesterday nifty and sensex both formed Bearish Belt hold like pattern at higher levels.  Indicating that Bulls possibly exhausted at current levels (cmp 12845). High made Yesterday 12934. Now, Impulsive move has ended, we can expect corrective pattern from hereon. Next important levels to watch in nifty are 12750. and 12550.  Technically, negative divergences formed in almost all major degree charts. Hence, its time to book profits in long positions, not to initiate fresh long positions. Regards, Suryadev Bandari Research Analyst www.earningwave.com

 Today , I am showing nifty weekly chart, as per chart shown, nifty near to its major resistance trend line. Elliott wave wise, nifty at the ending level of 5th Wave of larger degree.  That makes nifty vulnerable to correction at any point of time. Upside resistance placed at 12780-12900 zone.  Yesterday nifty achieved nearly 12780 resistance level. So we can expect correction any moment. Moreover, Diwali and Muhurat trading also tomorrow so most probably, upward journey nearing to end. Technical parameters too over bought and Negative Divergences formed. Investors protect profits and book profits as far as possible.  Keep watch 12430 zone carefully, once that support breaks, Bears take control. Regards, Suryadev Bandari Research Analyst www.earningwave.com