DLF (By EOD Nov 21)

Plan:

• Exit the long @ > = 144 (SL: 136 - till break out; 144 - after breakout)
• Potential entry points for shot are:
• 144 (Reason: Conservative. One short of possible peak.)
• 145 (Reason: diagonal resistance)
• 146.xx (Reason: Gap created on Oct 13 is being closed)
• 147 (Reason: )
• 149 Reasons:
• In Table3, wave1 and wave3 has moved 17.9 and 17.4 points. (wave3 can never be smallest). 132.4 + 17.4 = 149.8.
• In Table4, 161.8% retracement of wave4 is 149.2
• 151 Reasons:
• Monday candle will meet the day chart red-channel top at 151.xx.
• As per Table1, 138.2% retracement of Wave3 is 151.xx
• As per Table3, 361.8% retracement of Wave3 is 151.xx
• On Oct 13th, max price value was 151.xx
• 154 Reasons:
• Monday's candle can meet the line joining wave1-end and wave3-end only at: 154.xx.
• 157 Reasons: 
• As per Table4, 261.8% retracement of Wave4 is 157.xx
• Diagonal channel's support line(136.7x) + diagonal channel's width(9.xx pts) is 157.xx
• Note that currently Spot is at: 140.60 and 
• 150-PE is at: 10.50 and
• 145-PE is at: 5.70 and  
• 140 PE is at: 2.75
• 135-PE is at: 1.45
• 130-PE is at: 0.65
• Any shot may use Weekly Channel top (159) as SL.
• Diagonal present in the 5th wave is almost in a parallel channel, with distance between the line about 9.x points. Bottom line of the channel is at: 137 (approx; goes up by every hour). So, initial target of the expected down move will be 128. (approx; goes up by every hour).
• Purple diagonal line also gives target (per Wolf's pattern). It is certainly below 134 and goes down by every hour.
• Exit PE when price goes below 135. At 135, 135-PE will be very active. So, Let us buy 135-PE when the price is at: 149.
• NOTE: Unlike NIFTY, option quantity traded in DLF is small. So, do not put heavy amount in option.

Values to remember for Monday:

DayS1= ; DayR1= ; DayPiv = ; WeekS1 = ; WeekR1 = ; WeekPiv = ; WMA = 138.6

Caution for Shot:

• Though we are labeling XABC (in day Chart) assuming this is correction to the larger fall, quality of the anticipated down move needs to be watched. 
• Need to closely follow wave structure before entering shot after it gives breakout. 

Caution for holding shot:

• Beware of truncation. 
• In our current down move from 240+, 3rd wave contains extension. And 3rd wave was very strong. So, we can expect 5th wave to be equal to 1st wave. 
• 100.1 + 44.05 = 144.15. Already price has made a high of 144.20. This means that it is almost certain that we are going to see 5th wave truncation.
• Wave1 (of day chart) took 6 sessions to move 44.05 points. So, if we see a 5 wave move down from 151 with 44.05 points covering in 6 sessions, We need to be cautious for truncation. 

History on 5th wave truncation:

• In the week chart one can see truncation in the diagonal blue B to C. 3rd wave of C ended (at 120.05) during the week of Aug 5, 2013 and 5th wave ended at 121 (just 0.95 pts above 3rd wave of C) during the week of Sep 2, 2013). And twice it tried to go below 120.05.

Retracement Table:

Hour Chart:

• Moving up from 136.10 with positive divergence seen in Stochastic.[lower low from (2) and (4). But corresponding Stochastic is doing the other way.
• At (5) break-out is expected with target  > 146. As per the channel given in Day Chart, target could be 150. (Monday candle meets upper line of the channel in day chart is approx at 150)

DayChart:

• As 5th wave of C is a diagonal, reversal is going to happen shortly. We are able to mark red 4  in the graph because, now we know the end point of C (approx), 
• This means, corrective 4th wave is going to be over and original down move is going to resume, targeting sub 90 level.
• New channel is drawn to find target of 5th wave which is going to start. (Channel bottom is drawn by connecting green-2 and green-4. Channel top is got by drawing a line parallel to green2-1 line and passing through green-3.

Monthly & Weekly:
No new findings.