Conversations With Ramki: BankNifty, TataSteel, DLF

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.

(45 minutes)

Ramki, 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)
 

Comments

Deepak, Thanks for bringing

Deepak,

Thanks for bringing us this conversation, I didn't know much about elliot wave and used to look down upon the various % of Fibonacci retracements. But after watching this and going back to my charts, I was amazed to see in how many cases these %'s were holding up correctly.

Thanks,
Ananth

Nice to see the video, but

Nice to see the video, but most of the times, you have mentioned that this level should not break, that level is resistence, etc., as the chart is not clear we are not able to know which level you are telling clearly, may be you can improve the clarity of the chart or you can mention the levels very clearly such as 10,450 or so on. Once again thanks for the analysis.

Regards,
Ramesh.

Thanks - and my mistake. I

Thanks - and my mistake. I recorded the video through Skype, and the quality was bad.

 

Deepest apologies. I'll get a better setup next time...

Nice video there! Really

Nice video there!

Really something to think about.

may we know what software Ramki uses to show the Elliot wave %

Thanks!

ElV

Hi Deepak, I think this is

Hi Deepak,

I think this is very interesting and a novel attempt by you. Ramki comes across as a seasoned technical analyst true to his reputation. Enjoyed listening to him. If I may add, couple of suggestions on topics:

1. A monthly/quarterly discussion/write up from Ramki to get his perspective on various levels for the Indian Indices.

2. Ramki's take on technical analysis as against Fundamental analysis etc.,

thanks once again

regards, Venkat