Nifty P&F analysis: Supports coming, Medium term not bullish!!

Supports coming, Medium term not bullish!!

Date: 8th Feb 2015

 

Nifty last closing price: 8661.05

 

 

Daily chart

Figure 1 is 10 box P&F chart plotted with daily closing prices. Nothing much has changed in this chart. It remains bullish but as stated during last write up that 'X' is required to trade it which is yet to be formed. High Pole bearish pattern will occur if price closes below 8620. Previous top box values placed at 8600 - 8580 can act as a support for short term bounce. Lower time frame charts can help to trade them.

 

1 Min Chart

Figure 2 is 5 box P&F chart plotted with closing prices of every minute. Trend remains down in this chart and vertical count of 8640 discussed during last write up is almost achieved. Resistance levels acted well and Nifty turned more than twice when it came around those levels. Counts of 8590 and 8565 are active on this time frame at the moment. 50% retracement of move from 8240 to 8980 box value happened during Jan 2015 comes around 8600 levels. Price may take support around 8600 - 8580 levels but trades cannot be placed on that assumption. We need price forming bullish pattern around that to make it a trade able setup.

 

Figure 3 is Relative strength chart of Bank Nifty to Nifty. Bank Nifty has been a leading sector in this entire rally and current column has produced maximum number of Os since Sep 2013. This suggests that Bank Nifty has underperformed Nifty and lead the current fall. It has also formed Triple bottom sell signal which is not a bullish sign. The structure indicates some weakness in overall market from a medium term perspective.

Figure 1: Nifty daily 10 x 3 cl Point and Figure Chart



Figure 2: Nifty 1 min 5 x 3 cl Point and Figure Chart

 

Figure 3: Bank Nifty / Nifty 0.25 x 3 Point and Figure Chart

 

 

 -  Prashant Shah, CMT, CFTe

 

 

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.