In my previous blog I had mentioned that due to over bought levels correction will set in and form a wave A,B and C pattern http://analyzestockmarket.blogspot.in/2012/08/kpit-aug-14th-eod-analysis.html
As per that on Aug 16th KPIT hit a high of 139.4 and then started its correction as part of wave A pattern. Confirmation of wave A pattern ending will be evident if it starts wave B upward movement without getting below 128.2 level
According to Elliot wave analysis on a longer range wave formation 5 wave impulsive pattern got completed at 139.4 and now a wave A,B and C pattern may go through
Dotted lines in the chart denote shorter wave pattern and the solid blue line denotes the longer range wave pattern, according to both the wave patterns KPIT has already touched wave 5 max of 139.5 and confirms correction phase of wave A
Technical Indicators
Technical Indicators
Williams%R already is in oversold zone and TRIX still showing divergence suggesting a buy situation
Summary
Buy KPIT at current levels with a SL of 128.2 and target anywhere between 132 to 135 and wave B should end there and wave C correction wave may take it down to anywhere between 120 to 122
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