Trade Fresh O from here. Double Top if above 5860!!
Date: 29^th July 2013

Indicated possibility of a halt in uptrend in last week write up and the resistance area of 6060 – 6080 was mentioned. Looking left in P&F chart always help to find Support and Resistances. Nifty made high of around 6093 during last week and high box value of 6070 was marked in 10 box chart drawn with closing prices.

It is interesting to observe why I asked to leave longs below 5950. It has triggered Bull trap pattern near bearish objective line and that indicates near term weakness! The same can be observed in Figure 1 and 2 shown below. Unambiguous P&F patterns help in knowing about the pattern formation in real time or the level at which it will form! Occurrence will take care of time!

Short term downside vertical counts are activated in both the charts during last week. Larger degree trend seems forming some contracting pattern because both side internal lines are not breached and several counts are open in both the directions. I believe range expansion will happen but let price make us trade it.

Some support is visible between  5800 and 5840 on closing basis. But we have a setup worth not missing. First formation of O after Bull Trap near bearish objective trend line is an affordable set up especially for aggressive traders. Trade them with stoploss placed at high of that column. (30 points stoploss in 10 box chart). One might want to vary box size to manage risk.

And any double top Buy above 5860 must be taken because that will keep the price above bullish internal line. Stoploss to be placed on subsequent Double Bottom Sell signal.

Figure 3 is 1 box reversal chart of 0.25% Box value for observation. It helps in infusing some noise to P&F charts for analysing larger degree formations. Planning to start writing exclusively on 1 box charts.

Figure 1: Nifty 10 x 3 CL Point and Figure Chart

Figure 2: Nifty 10 x 3 HL Point and Figure Chart

Figure 3: Nifty 0.25% x 1 CL Point and Figure Chart

--          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 readers of this material should take their own professional advice before acting on this information.

Leave Bulls below 5950!!
Date: 22^nd July 2013

I asked in the last week write up to remain long unless Nifty goes below 5900. We saw the lows around 5910 and 5926 on Tuesday and Wednesday respectively but 5900 did not breach and new high of 6066 was made on Friday.  Buying at correctives and formation of Xs must have done well for traders.

As said earlier, set up is bullish. 6060 – 6080 seems the resistance area for a while and there are some signals that suggests a halt in current uptrend. But P&F gives us opportunity to form the rules that are objective and simple to take.

Ride the uptrend unless Nifty closes below 5950. Leave bulls if that happens. Some shorts with aggressive exit strategy can be taken if Nifty goes below 5920.

Figure 1: Nifty 10 x 3 CL Point and Figure Chart

 Figure 2: Nifty 10 x 3 HL Point and Figure Chart

-          - 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.

Remain long unless below 5900!!

Remain long unless price goes below 5900!!
Date: 15^th July 2013

Nifty witnessed price consolidation initially but broken out in the later part of the week. 5760 on the lower side was not breached to beat the 5900 on the higher side. Price set up is bullish with triangle breakout in closing price (Figure 1) and Triple Top breakout in High Low chart (Figure 2). Breakout has also activated vertical count of 6490.

Remain long unless price goes below 5900. Trade Double tops, correctives and Formation of Xs. 

Figure 1: Nifty 10 x 3 CL Point and Figure Chart

Figure 2: Nifty 10 x 3 HL Point and Figure Chart

-          - 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.

Expect sideways, Shut the terminal if it trades below 5760!!

Expect sideways, Shut the terminal if it trades below 5760!!
Date: 8^st July 2013

Nifty remained positive last week. Recommended to avoid shorts and buy correctives which has worked well. Nifty saw the bottom of 5760 to test 5900 again. Formation of X to P&F traders triggered a nice trade.

Significant anchor point suggests resistance at 5900. And that is not making longs affordable at the moment. Buy only if it goes above 5900 from here and apply aggressive exits.

I expect some price consolidation and sideways market during this week. Shut the terminals if it goes below 5760.

Figure 1: Nifty 10 x 3 CL Point and Figure Chart

Figure 2: Nifty 10 x 3 HL Point and Figure Chart

-          - 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.