Nifty
P&F Analysis!!
Date: 11th December 2015
Nifty last closing price: 7610.45
Daily chart
Figure 1 is 10
box P&F chart plotted with daily closing prices. Current formation has got
multiple bearish patterns in the same setup. consecutive bearish broadening
formations, High Pole, Bull trap and Double Bottom sell are formed in the same
column hence overall structure remain bearish. But close above 7690 is exit
level for short trades being a level for Double top buy signal. 7600 is Anchor
point of Nifty when plotted after significant breakout of 6300. Hence it can
remain important reference point for short and medium term traders.
Hourly Min Chart
Figure 2 is 10
box P&F chart plotted with hourly closing prices. Stated earlier that
bearish formation below 7800 will be the first indication that bottom of 7700
may not be held. It quickly made new swing low once 7800 was breached. Prior
low of 7540 is a significant reference point and every trader must be looking
at it. 7680 and 7830 are the reference
levels on the higher side.
Figure 3 is X-Percent
P&F Breadth indicator of Nifty 50. Indicator is at 12% at the moment that
shows that 44 stocks among 50 are in column of 'O' (downtrend) on 1% box value.
It is at oversold zone hence at least some consolidation is expected.
In brief
Trend & momentum is
down but market is in oversold zone. Close above 7690 is an exit level for medium
term short trades. 7540, 7410 are reference levels on the lower side whereas
7680 and 7830 are the key levels on the higher side.
- Prashant Shah, CMT, CFTe
Disclaimer:
All information provided above is for general information purposes only and does not constitute any investment advice. The readers of this material should take their own professional advice before acting on this information.
All information provided above is for general information purposes only and does not constitute any investment advice. The readers of this material should take their own professional advice before acting on this information.
