Nifty - P&F analysis!!

Date: 29th March 2015

Nifty last closing price: 8341.40

Daily chart

Figure 1 is 10 box P&F chart plotted with daily closing prices. Chart and pattern remain bearish as explained during last week. Shorts should remain in unless close occur above 8530 being mid value of current column that will form Low Pole. Fresh shorts should wait for next signal. 8290 - 8310 are Anchor Point levels that are possible support levels from here. But this is not very important to know rather looking for supports in downtrend is a harmful practice. Sticking to technique is more rewarding. 

 

1 Min Chart

Figure 2 is 5 box P&F chart plotted with closing prices of every minute. Trend is bearish and various downside counts up to 8270 have been achieved by the price. Low pole formation occurred recently has activated upside count of 8500. Though upside counts in downtrend are not very reliable I think trade above 8375 will increase the probability of same getting achieved. Consolidating columns are likely scenario from here.   

Someone asked me about current formation of Relative strength chart of Bank Nifty that I shared earlier. Figure 3 is 0.25% P&F Relative strength chart of Bank Nifty to Nifty. Bank Nifty is underperforming Nifty as discussed then which was major reason of bearish view over medium term. As shown in the chart, ratio going below 2.13 will indicate further underperformance from Bank Nifty. 



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 P&F Relative Strength 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.