Wednesday, December 17, 2014

Buy on Dips. Get Ready for a Relief Rally.

Dear All,

1) Economists are watching closely to whether the Fed changes its pledge to hold rates steady for a “considerable time.” This will be a key signal about whether the Fed is cautious or confident that interest rates will go up in the middle of 2015. Retaining the pledge would signal the U.S. central bank is being more cautious.

2) The retreat in crude oil prices has been the biggest macro development since Fed Chairwoman Janet Yellen’s last press conference in September. In their speeches, top Fed officials have been emphasizing the benefits of lower oil prices for consumer’s wallets and have generally ignored the potential negative impacts, including on financial stability, from possible over-investment in the oil patch.

3) Economists raised their eyebrows after the Fed statement in October said that the likelihood of inflation running “persistently” below the Fed’s 2% annual target had diminished. After all, the strong dollar and the drop in oil prices seem to suggest the opposite. Since the last meeting, core inflation has been stagnant and headline inflation has dropped. Economists at Jefferies expect the Fed to acknowledge that low inflation is more of a risk.

>>> NIFTY - Daily Chart <<<

>>> Click the chart to see on full screen <<<

Nifty breaks 100 dma and also 61.8% golden ratio. So whats next ?. Channel may support nifty as shown on chart. Else may fall towards 78.6% or 7917 as shown on chart.

>>> Nifty - Hourly Chart <<<

>>> Click the chart to see on full screen <<<

Hope the above chart clearly explains how the nifty is moving. Due to a short 3rd wave - we are on a extended 5th wave down move. You can witness a lot of Positive divergence in it. Hence start buying nifty for a good upmove very soon. Cheers!!!