Nifty- Entering New orbit

Rajkishore Bang
Congratulations to one and all on historical events taking shape one after another in the Indian sub-continent. We shall focus on Equity markets only.

We had come out with our TECHNICAL RESEARCH report in May 2013, when the levels of NIFTY were 5986 and in that report we clearly indicated that the NIFTY is going to create history in coming months, and with that, we also gave the possible levels which NIFTY might touch or achieve, in its journey towards
upper side. In that research report, we also clearly mentioned the time period in which the NIFTY might top out or make highest top.

We mentioned that nifty might touch the levels and then there could be some short rounds of corrections but nifty will continue to march ahead despite hurdles and fourth level is the one from where we expect markets to either consolidate or correct in small magnitude, just to gather enough steam, to start again for next real big up move. That second round will take the nifty to the highest point, which we believe, shall be the area, from where we shall get a major and sharp correction.

For the sake of convenience and understanding, we are hereby giving the levels of NIFTY which we gave in our previous report, which were expected to be achieved in coming period after May 2013 and from where nifty might give some short rounds of correction.

First Level -6640 – 6720

Second Level -7120 – 7280

Third Level -7480 – 7596

Fourth Level -7920 – 8080

From the date of our Technical Research Report, Nifty Entering New Orbit , May 2013, within the span of Fifteen months, NIFTY has achieved the Fourth level by entering in to that belt of 7920 - 8080, as mentioned by us in our research report.

As the Fourth level is been reached, we believe that now is the right time to come out with another report in continuation of the previous one, with the calculation of next moves and levels.

NIFTY gave annual closing at the levels of 6138 in December 2007. It closed at almost near to same levels at 6134 in December 2010 another annual closing. But there was a difference in its annual closing in December 2013 when it closed at the levels of 6304. It was higher than previous two occasions and just near to its all time peak of 6357. That closing was within the limit of one percentage point from 6357.

This annual closing supported our technical research in a big way and gave us idea that 2014 and 2015 will be the year of equity markets. And what followed next is         witnessed by one and all in last eight months time after December 2013.

In 2004, markets had a very good correction by 32.5%. In 2006, markets got corrected by 30.5%. In 2008, we all witnessed a massive correction by 64.5%.

In 2011, we saw a correction of 28.5%. In 2013, correction was of small magnitude and that was by 18%.

So keeping in mind the trend that market follows, we arrived at the conclusion that, next major correction shall be witnessed by the markets in 2015 only and not before that. When and why, the correction may happen or appear in 2015, is been discussed in detail in our first part report. There could be round of corrections after every up move, from the levels as discussed, but those corrections will not be of high magnitude. All corrections after every level will give markets more strength to march ahead with more energy. And major correction will take shape, as discussed by us, in 2015 only.

As the markets have moved the nifty in to the fourth level belt of 7920 – 8080, we believe, here also chances are very much there for a small correction taking place in short period. If that correction takes place, first support for the Nifty is at the levels of 7814 – 7824, followed by next support at 7483 – 7565 levels. After those levels, nifty has got very firm support at 7331 – 7118 levels. In worst case scenario, support exists at the levels of 6759 – 6797.

And if Nifty manages to cross the fourth level belt, as indicated here in the report earlier on, decisively, that will create a euphoric scenario. In that case, Nifty will find resistance, first at the levels of 8785 – 8835 followed by the levels at 9535 - 9616. As per our Technical research, Nifty will face final resistance between the ranges of 10028 – 10461.

After reaching every level as written above, in the euphoric up move, nifty will certainly face resistance and might correct by few percentage points. But major correction, as per our calculations, is expected to take place only after Nifty reaches or hits final resistance levels of 10028 – 10461.

We have used the word final as we believe NIFTY will give Major Correction, once it manages to reach that range of 10028 – 10461.

All the levels indicated in report have been arrived at after very deep and thorough Technical Research. For the sake of making it simple and easy to understand, we have avoided to mention all the complex calculations here in the report, which were used to arrive at those levels. If anyone wants to go through all those complex calculations, He/She or any Institute can approach us for the same.

-Rajkishore Bang

Note: While all precautions have been taken for the accuracy of the complex calculations, writer of this document makes no warranty either expressed or implied.

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