WEEKLY ANALYSIS FOR WEEK ENDING 14TH MARCH 2014

IT WAS AN  EXTREMELY TRIUMPHANT WEEK FOR NIFTY & IT HAS MOVED EXACTLY AS PER THE WEEKLY ANALYSIS OF LAST WEEK. THE BREACH OF THE RESISTANCE LINE COMING FROM THE EARLIER HIGHS FOLLOWED BY THE DECISIVE BREACH OF  THE CRITICAL  LEVEL OF 6358 SPOT SAW NIFTY BEING CATAPULTED TOWARDS 6537 SPOT LEVELS JUST MISSING THE MAGIC LEVEL OF 6565 AS WAS INDICATED LAST WEEK. SO THE EARLIER HIGH OF 6415 WAS ENTIRELY SKIPPED  TO MAKE A NEW LIFE TIME HIGH OF 6537. ALTHOUGH A NEW HIGH IS GENERALLY BOUGHT INTO BUT THE POINT TO BE NOTED IS BUYING TO BE DONE AFTER A PAUSE. SO, LOOK FOR A PAUSE OR INTRADAY OR EVEN A FEW DAYS OF MILD CORRECTION TO BUY  & ADD TO THE LONG POSITIONS TO RIDE THE MEGA BULL RUN.

IN THE WEEKLY CHARTS, THE MONSTER GREEN WEEKLY CANDLE OF LAST WEEK IS ONE OF THE LARGEST WEEKLY GREEN CANDLES AFTER THE  22ND MAY 2009 ELECTION RESULT CANDLE OR THE GREEN CANDLE OF WEEK ENDING  6TH SEPTEMBER 2013.& AFTER A WELL DESERVED  PAUSE ONE SHOULD NOT BE SURPRISED TO SEE MANY MORE MONSTER GREEN CANDLES GETTING FORMED.  THE WEEKLY INDICATORS ARE STILL LOOKING EXTREMELY ROBUST FOR MANY MORE WEEKS OF BULLISHNESS. THE WEEKLY MACD & ITS SIGNAL LINES  MAKING A HOOK ABOVE THE NEUTRAL LINE  COUPLED WITH WEEKLY RSI  BREAKING OUT OF ITS RESISTANCE AROUND 50 MARK TO SHOOT UP TOWARDS  66 MAY SEE MANY MORE WEEKS OF BULLISHNESS WITH SOME MILD PAUSE OR PROFIT BOOKING DECLINE IN BETWEEN. SO BUY DECLINES SHOULD CONTINUE  TO BE THE MAIN THEME OF BOTH SWING & INTRADAY TRADERS TO RIDE THE MEGA BULL RUN.

 AS CAN BE SEEN IN THE DAILY CHART ABOVE, THE FOUR MONTH OLD CHANNEL HAS BEEN DECISIVELY BREACHED TOWARDS HIGHER SIDE AND AFTER AN ATTEMPT TO GET ATTRACTED TOWARDS THE CHANNEL HIGHS NIFTY SPOT WILL AGAIN REBOUND FROM OR JUST SHORT OF THE CHANNEL HIGHS  OF 6303 OR EARLIER 9TH DECEMBER LIFE TIME HIGHS OF 6415 SPOT, UP TOWARDS 6700+ LEVELS BEFORE ANY MEANINGFUL CORRECTION SETS IN. ALTHOUGH THE DAILY INDICATORS LOOK HIGHLY OVERBOUGHT BUT THESE DAILY INDICATORS WILL BOW DOWN TO THE HIGHLY BULLISH LOOKING  WEEKLY & MONTHLY INDICATORS THAT WILL ATTRACT HEAVY BUYING INTEREST ON EVERY DECLINE INDICATED BY THE OVERBOUGHT LOOKING DAILY INDICATORS. HAVE STOP LOSS BELOW SPOT LEVEL OF 6454 & BOLDLY BUY THE INTRADAY DECLINES IF AT ALL  SPOT NIFTY COMES TOWARDS THIS 6454 LEVEL ON ANY DAY.

ALTHOUGH ELLIOTT WAVE COUNT STARTING FROM  4TH FEBRUARY LOW OF 5933 TILL 7TH MARCH HIGH OF 6537 INDICATE EITHER THE COMPLETION OF OR NEAR COMPLETION OF 5 WAVE PATTERN WITH 1ST UP TILL 12TH FEB HIGH OF 6106, 2ND DOWN TILL 14TH FEB LOW OF  5985, 3RD UP TILL  28TH FEB  HIGH OF 6282, 4TH DWN TILL  3RD MARCH LOW OF 6212 & 5TH UP TILL 7TH MARCH HIGH OF 6537 SPOT. ALTHOUGH ELLIOTT WAVE IS ONE OF THE MOST CONFUSING & TIME WASTING
ANALYSIS YET IT STILL GIVES A ROUGH GUIDANCE. WELL IF  THE RISE FROM 5933 HAS COMPLETED 5 WAVES TILL 6537 SPOT,  THEN EXPECT  THE “ABC” ZIGZAG CORRECTION OF 38.2%  TILL 6306 WHERE ALSO REMAINS THE RESISTANCE LINE FROM WHERE THE BREAK OUT MOVE TOOK PLACE. A 50% CORRECTION CAN PULL NIFTY DOWN TOWARDS  6235 OR EVEN IN THE WORST CASE A 61.8% CORRECTION CAN PULL SPOT NIFTY DOWN TOWARDS 6163 LEVELS.. WELL, ONE SHOULD BE REASONABLE SURE TO SEE NIFTY IF BY MISTAKE FALLS TOWARDS 6300 THEN HEAVY BUYING WILL COME IN TO LIFT IT UP TOWARDS MANY MORE NEW LIFE TIME HIGHS. AS OF NOW THE CHANNEL BREAKOUT FROM AROUND 6306 SHOULD SEE NIFTY MOVING UP BY 400 POINTS TOWARDS 6700 SPOT LEVELS EQUAL TO THE WIDTH OF THE CHANNEL FROM THE BREAKOUT POINT OF 6306. SO, BOTH MEDIUM & LONG TERM INVESTORS  BE BOLD & BUY DECLINES TO ADD TO THE LONG POSITIONS.

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