Nifty set to witness some price consolidation
Date: 11^th Feb 2013

    

                                              Figure 1: 10 x 3 Cl Point and Figure Chart

Series of O that has recently formed in various P&F Nifty chart is surely indicating that uptrend is exhausted for a while. But short term indicators in Nifty chart suggests that down trend has taken prices to oversold territory and might want to breathe some.

  Figure 2: 10 x 3 HL Point and Figure Chart

Looking left in various Point and Figure charts suggests that some support zone exists around 5900 and between 5860 - 5830. Prices will need some strength if these levels are to be broken and so some stepping back move is quiet possible. It needs very bearish and aggressive news to breach these levels in one go. Traders can keep an eye around these levels to play some small bounces. Nifty resistance for the week seems around 5960 – 5970 levels.

I expect prices to consolidate from here with negative biased trend. Strategies of selling at resistances seem affordable for next few sessions.

-         -  Prashant Shah

        

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