HDFC: WaveTalks- Pattern / Patience & Penultimate Correction

Jul 4, 2021

WaveCount
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• 1-2 -3 -4 (Running Currently) - 5th Wave Expected Upside.
• 4th Wave
o Unfolding as Triangle having last leg - "e" wave close to end.
o 4th Wave Triangles are "penultimate wave" means it is 2nd last wave & one more wave left in the structure which started from the lows of 1473 on 23rd / 25th March2020.

• 5th Wave - Expected Next
o 5th Wave can be explosive upside & can travel upside to 2900+ high in days & weeks ahead

Traditional Chart Patterns
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• Cup & Handle Pattern
o Valid Cup & Handle Pattern always has prior trend as uptrend. In current case it is tilted cup with handle which is valid pattern as prior wave ("b-wave) was uptrend from low@2365 to high@2896
o Bias - Positive

• Inverse Head & Shoulder Pattern
o This pattern has no such requirement like cup & handle pattern but prior trend if downtrend is always preferred as after consolidation it most likely has to reverse & move upside again once neckline is crossed.
o Bias - Positive


Moving Average
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o 200 DEMA ( Daily Exponential Moving Average) has been taken into consideration which seems to be quiet in sync with the stock move as supported multiple times post completing "wave-1" which got resistance exactly at 1921.90 ( approx.- 1922)
o 1st support after completing Wave-1 was at 1907 which was exactly 200 DEMA support.
o Taking support from 1907- stock travelled explosive upside in "Wave -3" which got completed at high@2777
o Wave- 4 unfolded as Triangle which is almost completed or about to complete with "e-wave" the final leg in the triangle.
o "c-wave" in the triangle took support at 2354 which is again 200 DEMA support
o "e-wave" in the triangle also close to 200 DEMA support.
o Bias - Positive

Stop Loss
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• Stop loss should be below "c-wave" 2354 plus few points lower which can be taken as 2345 (10 points lower) or as per trader's judgement

Target
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• First Target - 2650 which is "d-wave" of the triangle wave
• Second / Final Target - 2900+

Risk to Reward
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• Excellent risk reward of 3-4 times

Conclusion
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• Stock has bullish bias holding above 2345 key & critical level which is close to 200 DEMA support & can be expected to move in the explosive 5th Wave to the targets of 2650 & 2900+ in days & weeks ahead.
• We also conclude that stock market can see fireworks generally if Nifty holds above 15450 –key & critical level. Nifty Expected move can be for 1st Target -15900 / 2nd Target – 16350 / 3rd Target – 16750

Thanks & Have a nice week ahead.

Aug 5, 2021

Trade active

14:33 Hrs / 5th Aug2021

Nifty Index Target Achieved - 16350 Day high @ 16349 - Intraday careful at the tops @ 16350

Nifty Support - 16220/16185

HDFC - 1st Target achieved at 2650 & 2nd Target pending for 2900+

Plan Your Trading Carefully.

Aug 18, 2021

Trade closed: target reached

10:03 Hrs / 18th Aug2021

Last Price @ 2740

HDFC inches one step higher & close to upside target in fifth wave of the series starting from 1473-Now at 2740-Day High @ 2771- Wave 3 ended at 2777-has done its minimum objective of reaching close to wave 3 target so what will you do next?

Do manage your risk & trade. Thanks for all your support.