Nifty
to test 5900
Date: 4th Feb 2013
Date: 4th Feb 2013
Figure 1: 10 x 3 Cl Point and Figure Chart
Nifty has closed below 6000 for second consecutive day today.
The event is triggering some consolidation to form over next few trading
sessions. Have a look at 3 box reversal chart shown above of Nifty of 10 box
value.
Chart is trading above 45 degree trend and long term charts
are suggesting upward direction with various counts being open. Short term
formation has generated double bottom sell signal after some recent bear traps
in the up run. This is making prominent short term topping formation.
Short term supports on chart above is clustering around 5900
with 45 degree internal line, anchor points and a vertical count that is been
activated recently. This makes me bet atleast for 5900 for short term traders.
Figure 2: 10 x 3 HL Point and
Figure Chart
Chart shown above is high low chart to analyse horizontal
patterns and short term price move. A bull trap pattern that has formed
recently is signaling some cooling for prices as well. This is confirming the
view of short term weakness in prices.
Short term traders should remain short with stop loss at 6030
on closing basis and investors should wait for the opportunity to find the
value.
- - Prashant Shah
Disclaimer:
All information provided above is for general information purposes only and does not constitute any investment advice. Company or Author shall not be liable for loss or damage that may arise from use of information provided above. The report is purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The opinions expressed are current opinions as of the date appearing in the material and may be subject to change from time to time without notice. Investors should not solely rely on the information contained in this document and must make investment decisions based on their own investment objectives, risk profile and financial position. 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. Company or Author shall not be liable for loss or damage that may arise from use of information provided above. The report is purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The opinions expressed are current opinions as of the date appearing in the material and may be subject to change from time to time without notice. Investors should not solely rely on the information contained in this document and must make investment decisions based on their own investment objectives, risk profile and financial position. The readers of this material should take their own professional advice before acting on this information.
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