Weekly Nifty technicals :: HDFC Securities

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Observation:
 Week’s action formed a bear candle at higher levels which is mildly negative indication for the broader index, but the
fall is not enough to form a “Dark cloud cover” pattern which is clear bearish reversal candle. However we could
confirm the downtrend on a fall below 8430.
 As per our preferred wave count, index has completed the major “wave iv” at 7723; and index is in progress of major
“wave v” towards extended target of 8720 - 8900 -9000 band. (Our initial targets of 8350 - 8600 are attained already)
 Index has held the swing support of 8430 during the week; the crucial level remains same at 8430 levels.
 Index has been forming higher highs on weekly chart which is a bullish continuation sign, the progressing “wave v”
still has the chance to test the extended levels of 8720 and 8900 – 9000 band which is 100% of “wave i” from the end
of “wave iv”(7723). Three weeks back price has tested the 61.8% projection level (8430) and last two weeks it has
managed to stay above that level which is a positive stance for the market. As long as index stays above that level it
could head towards 100% projection levels as per the extension rule (when “wave iii” is 161.8% or more then “wave v”
is 61.8% or 100% of “wave i”).
 Overall short term traders can continue with positive bias in market towards 8720 – 8900 – 9000 levels with the
trend reversal level of 8430.

LINK
http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3010194