July 23, 2021

Bottom Line: Nifty witnessed V shaped recovery along with Gap up opening. The trend remains in the
consolidation range of 15620-15920 levels.

Latest Webinar – Nifty Neo Wave with OI and Volume Profile on YouTube channel @KyalAshish.

Nifty Daily chart:

NIFTY - Daily 22-07-2021 Open 15736.6, Hi 15834.8, Lo 15726.4, Close 15824 (1.2%) EMA1(Close,50) = 15,560.60
16,000
15,824
e
g 15,560.6
15,500

15,000
e

14,500

c f 14,000

f 13,500

d 13,000

12,500

c a
g 12,000

c e 11,500
b
Copyright, July 2021
f Waves Strategy Advisors
a 11,000
www.wavesstrategy.com
g d
55 Days Time Cycle
x
e b d 10,500

x
c
10,000

Jul Aug Sep Oct Nov Dec 2021 Feb Mar Apr May Jun Jul
f NIFTY - RSI(14) = 54.56

70
d

b 54.556

30
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 The Financial Waves Short term Update – July 23, 2021
Nifty 60 mins chart:

Wave analysis:

Nifty continued to trade with high volatility. First we saw breakout above 15900-15910 zone but then fell
sharply which took out the support of 15630 levels. Nevertheless, on a closing basis it managed to protect
this support level in Tuesday’s session. In yesterday’s session, it had a massive Gap up opening of almost
100 points post which it sustained above the same and continued to move higher for the rest of the day. By
end of the day, it managed to close with the huge gain of 191 points. From last few weeks, Nifty is hardly
trading in the range of 300-350 points however moves within this range is so powerful that one can be driven
by emotions and hence keeping a risk management is necessary.

It is always better to look at the Bank Nifty structure to understand the overall trend. In the last session
Bank Nifty too had strong Gap up opening similar to the Nifty however in the second half, it erased most of
the gains and closed at day’s low. Nifty closed near days high whereas Bank Nifty closed at day’s low. This
indicates that it is going to be crucial from hereon that how bank nifty is performing. Apart from this, sector
wise, Smallcap50 and Midcap50 continues to be under bull’s radar and gained 1.36% and 1.13% respectively.
IT, Media, Metal and Realty were the star performer. At the same time, India VIX came under pressure and
lost -9.99%.

On the daily chart, prices showed ‘V shaped’ recovery from the lower Bollinger Bands and formed bullish
candlestick pattern which has given close above prior bars high. Thereby, daily bias has reversed on upside.
Now on downside 15730 should act as crucial support.

Nifty reversed after closing above 15620 on previous day thereby managing to protect the weekly low on
closing basis so far. The fall was sharp towards 15630 levels but given the equal fast reversal on upside it
seems that the market will be stuck in a range for now and it is best to get clarity either for a close above
15920 or below 15620 levels. The sharp fall and sharp rise can result into a consolidation mode for now.
Recent price action suggest that both Bulls and Bears are getting trapped on either side and the trending
move is still awaited.

On 60 mins chart, we are showing the alternate possibility since past few days that after wave a the entire

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 The Financial Waves Short term Update – July 23, 2021
sideways grinding was only wave b and now wave c on upside can start. However, this scenario will become
preferred once we see a decisive breakout above 15920 levels. On the other hand any move back below
15620 will keep the existing counts intact. Next 2 to 3 days will further confirm and a trending move is due
to emerge soon.

In short, Nifty continues to flirt near the important resistance and support areas which is keeping trend in
a consolidation. Till we do not see resumption of trend on either side, it is better to adopt range bound
strategy.

AXIS BANK daily chart:

AXISBANK - Daily 22-07-2021 Open 750.1, Hi 758.5, Lo 741, Close 747.15 (0.2%) EMA(Close,60) = 738.44
(e)
800
(g)

750
747.15
738.437

(c) (f) 700

650
(a)

(x) (x)
(d) 600
Copyright, July 2021
(b) Waves Strategy Advisors
www.wavesstrategy.com 550
b

500

450

a
400
c
(x)

Oct Nov Dec 2021 Feb Mar Apr May Jun Jul
AXISBANK - RSI(14) = 47.36

70

47.3553

30
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 The Financial Waves Short term Update – July 23, 2021
AXISBANK 60 mins chart:
AXISBANK - Hourly 22-07-2021 04:29:59 PM Open 747.15, Hi 747.15, Lo 747.15, Close
e 762.325
780
761.625
761.625
c 756.5 760
749.75
b 747.15
747.15740
a
d
d
720

700

Copyright, July 2021

f Waves Strategy Advisors 680
b
c www.wavesstrategy.com
660

640

g
e
(x) 620

May Jun Jul

AXISBANK - RSI(14) = 40.01
70

40.0098
30

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Wave analysis:

Axis Bank rally recently fizzled out near 775 levels and post that showed severe fall towards 740 levels in
last few sessions. This has brought back prices near to swing support area and it will be important to see if
this support holds or not.

As shown on the daily chart, there is high possibility that in the mid of April 2021 prices completed minor
wave (x) and post that third standard correction looks to be forming Neutral Triangle Pattern. The
completion of this pattern will be confirmed once we see faster move below 720 levels. RSI which gauges
the momentum is showing breakdown from the Head and Shoulder pattern is not a good sign over near term.
In the previous session closed near the trendline support and also near the 60 EMA support. Prices formed a
Doji like candle with long wicks on both sides of the candle indicating indecision over the trend direction.

As shown on hourly chart, minute wave f of Diametric pattern is currently ongoing on downside. We can see
RSI is already near the oversold levels and price is approaching the trendline support. A break above the
ichimoku cloud along with 760 level would indicate that wave f is in place and wave g has started on the
upside.

In short, Axis Bank is at extremely crucial juncture. Break above 760 can take prices towards 775 level
whereas any close below 740 will weaken the stock further towards 720 levels.

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 The Financial Waves Short term Update – July 23, 2021
Muthoot Finance Daily chart:
MUTHOOTFIN - Daily 22-07-2021 Open 1539.95, Hi 1612, Lo 1532, Close 1606.4 (5.4%) Tenkan-sen (Conversion Line)
1,650
1,606.4
1,606.4
1,600

1,563
(iii) 1,550
1,529.2
1,500

(i) (iv) 1,450

1,436.8
(v)
X 1,400
(c)
(b)
1,350
(d) 1,335.5
(iii) (a) 1,335.5
1,300

1,250
(a) (i)
(f)
1,200

1,150
(ii)
Y
1,100
(c) (ii)
(e) (b)
1,050
(iv) Copyright, July 2021
Waves Strategy Advisors
www.wavesstrategy.com 1,000
(g)
W
950

MUTHOOTFIN - RSI(14) = 65.26

70
65.2619

(ii)

30
Aug Sep Oct Nov Dec 2021 Feb Mar Apr May Jun Jul
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 The Financial Waves Short term Update – July 23, 2021
Muthoot Finance 60 mins chart:
MUTHOOTFIN - Hourly 22-07-2021 04:29:59 PM Open 1606.4, Hi 1606.4, Lo 1606.4, Close 1606.4 (0.1%) SAR(0.02,0.2) = 1,551.22
1,650

1,606.4
1,600
i
(iii)
iii
v 1,551.22
1,550

ii
1,500

(iv) 1,450
iv

1,400

1,350

Copyright, July 2021

i Waves Strategy Advisors
1,300
www.wavesstrategy.com
f

1,250
(i)
ii
1,200

1,150
(ii)

g
Y 1,100
(ii)

19 26 May 10 17 24 31Jun 7 14 21 28 Jul 5 12 19

MUTHOOTFIN - RSI(14) = 68.88

70
68.8802

30

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Wave analysis:

We have continued to maintain bullish stand on Muthoot finance based on Elliott wave structure. It is one
of the stocks which has been outperforming the overall market and has continued to move higher.

On the daily chart, in the mid of April 2021 prices completed intermediate wave (ii) and since then
intermediate wave (iii) is ongoing. This wave (iii) has lot to cover on upside and hence medium term
investors should stay invested as long as 1440 is intact on downside. RSI also relieved its overbought state
and has created further space on upside which is a positive sign. We can see that it has continued to sustain
above conversion and base line of the Ichimoku Clouds which indicates that momentum remains strong on
upside.

On 60 min chart, we have been witnessing subdivision among minute wave (v) which is extending now as
per equality with minute wave (i). From hereon buy on dips strategy will persist as long as 1550 is intact on
downside. On upside it can move towards 1650 level where immediate target is placed as per recent
structure.

In short, view for Muthoot finance remains bullish. Accumulate in the range of 1600-1590 with 1550 as
support and target towards 1650 can be expected.

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 The Financial Waves Short term Update – July 23, 2021
RELIGARE Daily chart:

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 The Financial Waves Short term Update – July 23, 2021
RELIGARE 60 mins chart:

Wave analysis:

Bull market has continued in Smallcap and Midcap stocks. RELIGARE is one of the stock which bottomed out
near 16 level in the mid of March 2020 and since then prices have increased multifold and trading near 160
levels. In the previous session it closed with a massive gain of 9.98%. Other broking stocks like MOTILALOFS,
JMFINANCIL were up by 2-4%.

On the daily chart, stock has continued to maintain higher high higher low structure. In the entire month of
June 2021 it retraced around 38.2% of the prior up move and recent rise has taken out the previous peak
which suggest that uptrend has resumed. Now on downside zone of 145-140 will act as an immediate support
zone. As per channeling technique, it is likely to head higher towards 190-195 levels. We have shown ADX
indicator which gives an indication if the stock is trending or in a trading range. The adx of this stock is 42.4
giving an indication of a trending market. The reading above 25 means strong directional strength.

On the hourly chart, 20 periods Exponential Moving Average is acting as a brilliant support line. This suggest
that one should be in the direction of the ongoing trend as far as this line is protected and any pullback
towards the same should be utilized as buying opportunity. Closest support is placed at 150.

In short, trend for this stock is positive. Use dips towards 158-156 as a buying opportunity for a move towards
175-180 levels as long as 150 holds on the downside.

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 The Financial Waves Short term Update – July 23, 2021

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