$NIFTY $SENSEX Monthly iMTF™ Market Update

$NIFTY $SENSEX Monthly iMTF™ Market Update. The Indian stock market continues to make new high’s.  However, we have had the first down month after 5 bullish months.

Note:  All charts are provided by TradingView for this article

Below is the monthly chart.

Since Feb 2004, the India stock market has been in a long term bullish trend.   There was a medium pullback in 2016 but the market has yet to experience a major pull back.

Last month, we posted that the next major resistance is 9733 and then 10251.55.    We broke the 9733 resistance and now have a high probability of reaching 10251.55.    A lot of traders ask “When”?   Let’s look at the lower time frame to see how they look and determine if August has a high probability of reaching the next resistance.

 

Below is the weekly chart.  The weekly time frame shows the bullish trend is still very strong with no clear signs of a minor pull back at all.    The multiple time frame supports are going high as price goes up.   If there was a sign of weakness, you would have time frame supports going up but no multiple time frame support as you have in this case.

Below is the daily chart from eSignal.    We have enabled Elliott Wave with the iMTF® Indicator.

The daily is in a bullish trend with a minor pull back to the support of 10333.    The major support is at 9638.29 and another minor support of 9793.32.    From the Elliott Wave point of view, we are in the Institutional Wave 3.

The bullish way needs to continue to move up making new high’s.   If price comes to the minor support at 9793.32 without going higher, it would be a sign of weakness.     The reason is that the bullish trend needs to go up a certain amount before a major pull back can occur.   If it doesn’t then a major pull back can kill the bullish trend.

 

 

Trade Opportunities

Here is a list of India stocks that are completely bullish:

Here is a list of India stocks that are completely bearish:

 

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About the Author Manesh Patel