Weekly Nifty and Sector Technicals :: HDFC Securities

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Observation:
 Week’s action formed a long upper shadow candle at the resistance zone which is bearish reversal pattern;
confirmation would be available on a fall below 8140.
 As per our preferred wave count; two best probabilities are still visible and we can’t workout the single stance in the
broader picture as the index stayed within the indecisive band on 7961 to 8400. We need even more price
developments to see the clear picture.
 First probability is index has completed the “wave v” at 8626; and it has started new falling leg from the high of 8626.
The initial fall witnessed from 8626 to 7960 would be internal “wave a / i” and the next rise from 7960 to 8365 is
“wave b / ii” of “wave iv / x” of larger degree. In this case index could slide down towards 7700 – 7300 levels (if it
stays below 8400). A break below 7960 could keep the bearish view intact. However, index already tested our initial
downside target of 8060 levels and the next near term upside target of 8350.
 Second probability is the “wave v” is still in progress with larger extension, in this case top of 8626 could be “wave i of
wave v” and the last fall is “wave ii of wave v” which has ended at 7960. Index is in progress of “wave iii of wave v”
which could head towards 8627 – 9000 levels. This view will come into picture if index decisively close above 8400.
 Last week index has hovered within the band of 8400 – 7961, breakout/breakdown would lead the price in the same
direction

LINK
http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3010471