Elliott Wave Update of Capital First Ltd (CAPF) as on 31 March 2016

| March 31, 2016

This Elliott Wave Analysis report of Capital First Ltd (CAPF) is update on my previous analysis report Capital First Limited (CAPF) can achieve 464-551 without breaking below 320, CMP 359 prepared on 28 Feb 2016 where I expected this stock to bounce till 464-551 in medium term without breaking below 320 when stock was trading at 359.

Strategy was buy on dip and this stock declined till 346 next day followed by a good rise of 30% in a month to achieve 444 today. Let’s have a fresh look at latest charts now. Please read last analysis report for previous wave counts of CAPF.

Elliott Wave Analysis of stock CAPF

Elliott Wave Analysis of stock CAPF

This is weekly time bar chart of CAPF covering move from life time low 91. As I explained in my last analysis report published on 28 Feb 2016, It seems wave (3) completed at 464 followed by wave (4) completed at 321.

Wave (4) looks a Simple Zigzag correction which retraced exactly 38% if calculated from all time low 91. Whereas it retraced bit more than 38% if calculated with respect of wave (3) only.

If wave (4) really completed at 321 then wave (5) needs to project minimum 38%-61% which is placed at 464-551.

Possibility for Decline:

This stock can fall back only if pattern at top turns into “3-3-5 Flat Correction” of “Irregular Correction”. Stock can fall back below 321 followed by another good bull rally for new high but first we can expect 464 at least in both the cases to complete Flat or Irregular Correction wave (B).

Let’s have a spate look at pattern formed at top on separate daily chart:

Elliott Wave Analysis of stock CAPF

Elliott Wave Analysis of stock CAPF

This is daily time bar chart of CAPF covering move from 15 April 2015 high 464 which I have shown as end of wave (3) on first weekly chart.

The decline from 464 to 321 can clearly be seen as (abc) and further bounce from 321 can be: –

  1. Wave 1 and 2 are completed and 3 in progress if bigger wave (5) is in progress from 321. This stock can reach much higher levels in this case.
  2. It can be waves (a) and (b) are completed and (c) in progress if the whole pattern is going to become Flat Correction or Irregular correction as bigger wave (4). This stock can once touch or break above 464 followed by decline near 321 followed by a huge bounce for new high in this case.

Within the bounce from 321, 100%-123% projection for wave (3 or c) is placed at 463-490 whereas 38% retracement of whole wave (3 or c) till now is placed at 406. So, Immediate/modified stoploss for this stock must be 2-3 points below 406 at present which can be changed later based on wave’s conditions.

Conclusion:

Capital First Limited (CAPF) bounced almost 30% since 28 Feb 2016 after my previous analysis report. Now, some profit may be booked and hold rest position with stoploss some points below 406.

This stock has possibility to touch 464 at least and have scope for much higher levels. So, hold with stoploss some points below 406, either we will get huge upside or our stoploss will trigger in profits to re-enter at lower levels. Even 30% profit on investment within month is huge.

Click Here to Learn Practical Application of Elliott Wave Theory  in real time trading/investment from the deep experience and true knowledge of Deepak Kumar .

Click Here to subscribe for  Daily Elliott Wave Analysis Reports of Nifty with Stop loss and Trading Strategy by email.

Join my Facebook Group ” Practical Application of Elliott Wave Theory” for my regular updates and analysis reports of Nifty.

Also read,

Tags: ,

Category: Stocks

About the Author ()

Deepak Kumar is an independent Technical Analyst, regular practitioner and Trainer of Elliott wave theory applying Elliott's Wave Principles on Indian Markets successfully since 2011 and made many accurate predictions. He is also the author of book "Practical Application of Elliott's Wave Principles by Deepak Kumar"

Comments are closed.