The Target on the Nifty (6060) has come as we had predicted on our previous analysis on 21st September 2012. Now we are back with more Evidences of Nifty moving up to 6384 in near term (may be by February end). The Analysis goes as below.
Let's First look at the Elliott Wave patterns formed on the Nifty Chart. As you can see in the chart and like we observed it in our last post We are still not sure if the upmove started from 4531 is a Corrective ABC or Impulse 5 Waves. But one thing we can tell is that there is one 5 Wave pattern Emerging as shown in the figure below.
And as per Elliott wave calculations this pattern will have a minimum movement upto 6384 because in this pattern the 5 Sub waves (1,2,3,4,5) of the Wave (3) are dividing the Wave (3) into 61.8% and 38.2% as shown. This division comes because sub wave 5 of Wave (3) is extending itself from its normal movement. But there is one wave calculation which says this move can end near 6234 (Sub Wave 5 being equal to 1.618 times Sub Wave 1) but that looks unlikely with our further evidences shown in our next charts below.
Lets have a look at more evidences which support the above mentioned move in the nifty.
1) If you can see in the below figure the Nifty is following a 11 week peaking cycle from the time it started moving up. The peaks you can see in the Long term KST at the bottom of the chart. 3rd cycle is running now and it is in it's 7th week and the peaking is yet to happen
2) As you can see the Long term KST is moving upward in a channel and the next move pending in that channel is towards the upper limit of the channel.
3) When you look at the volume in the chart you can see that volume is increasing as the cycle is peaking and decreasing while market is correcting repeatedly and this time it should be no different and the peaking of this cycle is still pending and may start any day from now till 11 weeks are completed.
4) Also if you see the last chart where Long term KST of USDINR is moving in a diagonal channel and its next move is towards the Lower Limit which means Appreciation of INR and Depreciation of USD which intern means more funds flowing into India which shows the positive sentiment on Rupee for the short term.
So looking at all these above Technical Evidences it looks like further up move towards the above target of 6384 is expected Nifty in very near term.
Looking at Trading Point of View based on above analysis
Traders must place their long bets on Stocks which have upsides pending as per Elliott Wave and Fibonacci Calculations. Some of the stocks to go long are given below with their potential Targets in near term.
Scrip Potential Targets
SBIN 2824
Axis Bank 1508
Tatasteel 454
Bharti Airtel 430
REC Ltd 289
