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Charts & Analysis

At MarketVision: Conversations With Ramki

This isn’t entirely a "short" take but it’s a series we intend to continue: Conversations.

In the first in the series, Deepak Shenoy speaks with N. Ramakrishnan, popularly known as Ramki. Ramki has over 25 yrs of experience with markets, and has rich and deep knowledge of the Elliott Wave Theory. His views are sought after by leading banks and hedge fund managers around the world.

He now runs the treasury of a bank in the Middle East. He writes at www.wavetimes.com – a must visit for traders.

(See Video: 45 minutes)

Unknown ObjectRamki, over a casual conversation, runs us through Elliott Waves, Fibonacci Retracements and Price patterns in the BankNifty Index, DLF and Tata Steel. I’m posting what he mentions in the chart.

All the charts showed serious bearish influences, according to the wave theory. For Bank Nifty, Ramki suggests that the fall could be supported around the 9100 levels.

DLF’s outlook is more bleak, with the best level to buy being 185, and the stronger support being at 162 or whereabouts. The stock is at 210 today and the outlook isn’t very positive.

TataSteel seems to be retracing a little and is bearish for the most part. It seems to be in a temporary range where a short term trader could look at to sell at 635 or 645 if it reached there. At the lower end, the stock looks like a great technical buy around the 440 levels.

I’m not an Elliott wave person, and I’m sometimes in the camp that believes that if you use enough numbers you find a retracement that works (like if 61.8% doesn’t work, 78.2% will, or 50%, or 38.2% or such). But I’ve seen enormous amounts of money made by people who follow such retracement theories, so I cannot mask my ignorance with arrogance. If it’s not a science, it’s an art, but a way to make money nonetheless, and there’s always more to learn!

Look forward to more such conversations in the future. (And yes, we’ll have Value investors, macro analysts and personal finance conversations with varied personalities as well)

Remember all views are for educational and information purposes only! (That means: This is not advice)