Nifty P&F Analysis!!

Date: 19th October 2015

Nifty last closing price: 8238.15

Daily chart

Figure 1 is 10 box P&F chart plotted with daily closing prices. Current formation is bullish and trend is up. 8490 is an active count though there is Anchor point resistance at 8400. Close below 8170 will form High pole which is an exit trigger for longs.

Hourly Min Chart

Figure 2 is 10 box P&F chart plotted with hourly closing prices. Bullish inverted head & shoulder formation is at bottom that places horizontal count at 8460.

Figure 3 is X-Percent P&F Breadth indicator of Nifty 50. 74% stocks from Nifty 50 are bullish which is an overbought zone. A pause or correction in short term is possible. 'M' type formation leaving overbought zone in Breadth indicator usually follows some sharp correction. 

In brief

8400+ looks possible. But breadth is at overbought position hence fresh longs should wait for the next signal. Exit level for current longs is placed at 8170 at the moment. 

- Prashant Shah, CMT, CFTe

Disclaimer:
All information provided above is for general information purposes only and does not constitute any investment advice. The readers of this material should take their own professional advice before acting on this information.