Weekend call -
Sell BAJAJ AUTO for target of 1453 - 1348 with stop loss of 1655. . . .
. . . Comments -- As per weekly chart from the bottom of 1293 (B1) to
the top of 1822 (T3) scrip was in rising
trend, forming higher tops & higher bottoms. At 1739 level scrip has
changed it’s formation
& formed it’s 1st lower top (T4) signaling possible changed of
trend.
At 1622 levels scrip has given downward breakout of rising trendline
drawn by connecting
all rising bottoms from B1 to B4 giving 2nd reversal signal. From there
near term possible
target comes to 1453 & mid term 1348.
Now on lower side scrip has immediate support of it’s higher bottom B4
at 1566 & 30
weeks moving average support at 1552 levels. If it closes & sustain
below this, then it will
complete the formation of lower top & lower bottom & may go
further down to form new
lower bottoms & lower tops signaling change of trend.
On upper side it has immediate 10 day’s moving average resistance at
1615 & if it crosses
this then 1645 & 1650 are 30 & 60 day’s average as well as
rising trendline resistances.
Weekend call - Sell ITC for target 192 – 187 - 162 with stop loss of 217. (Below 187 major selling expected) . . . . . . . . .
Comments --
In monthly chart from the bottom of 66 (B1) to the top of 216 (T4) scrip was in rising trend
forming higher tops & higher bottoms.
Since last 6 months i.e. from July to December scrip is moving in a range bound area
between” 211 to 185 levels, forming bearish Hanging man pattern at top & indicators has
started giving negative divergence forming lower tops & lower bottoms. (In between only in
October month it has formed new high at 216 level & formed bullish candle. Again in
November & December month it has started forming lower tops at 215 & 208 & bottoms at
189 & 192 levels respectively with increasing volume), signaling weakness in the scrip.
Now on upper side if scrip is not crossing it’s all time high of 216 & breaking it’s major
trendline support of 192 & weekly moving average support of 187 then it will confirm trend
reversal forming lower tops & lower bottoms & from there near term possible target comes
to 162.
Weekend call - Sell SUN PHARMA for target of 448 - 392 with stop loss of 546. . . . . . . . . . .
Comments --
As per the Elliot waves counting scrip has begin it’s final upward movement (5th wave)
from the bottom of 190 (B1) (31/03/09) & formed top T4 at 539 (29/07/2011) levels forming
higher tops & higher bottoms. From there scrip is moving in a sideways zone between 540
& 448 levels.
From high of 511 (T3) to 540 (T5) scrip was forming higher tops & higher bottoms, but
indicators has started forming lower tops & lower bottoms giving negative divergence,
signaling weakness in the scrip.
In last December month scrip has given downward breakout of it’s long term rising
trendline [drawn by connecting higher bottoms of 4.50 (29/01/1999) & 190 (31/03/2009)
(adjusted price)] at 516 levels with increasing volume, forming bearish candle, supported
by negative indicators, indicates weakness in the scrip.
Now on lower side scrip has immediate support at 448 levels. If it breaks this then it will
come out of it’s sideways movement, giving downward breakout , & it will start forming
lower tops & lower bottoms signaling trend reversal i.e. from up trend to down trend & may
go further down to form new lower bottoms around 392 levels.
If we assume that wave 5 terminated at 540 levels then, 38%, 50% & 62% retracement of it
comes to 407 – 365 – 323.
38%, 50% & 62% retracement of the whole cycle from bottom of wave-1 to top of wave- 5
are 336 – 272 – 208.
