Nifty Point & Figure Analysis!!

Date: 25th October 2015

Nifty last closing price: 8295.45

Daily chart

Figure 1 is 10 box P&F chart plotted with daily closing prices. Chart has not moved much during last week. Trend is up and formation is bullish but approaching a resistance zone placed near 8400. High pole will get formed at 8205 which is the exit level for longs.

Hourly Min Chart

Figure 2 is 10 box P&F chart plotted with hourly closing prices. Chart is bullish for short term & momentum traders. 8370, 8460 are active counts but at the same time they may act as a supply zone as well because of several formations that took place around same levels in the past. Price pattern will confirm the supply zone. 

Figure 3 is X-Percent P&F Breadth indicator of Nifty 50. 70% stocks from Nifty 50 are bullish.

Figure 4 is 0.50% box P&F chart of Nifty plotted with closing prices. It shows the current broader picture of Nifty. Price witnessed sharp sell off after Quadruple bottom formation below 8357 during August 2015. Price is approaching breakout level of that formation which is expected to act as a resistance though temporary.  

   

In brief

Charts remain bullish. But approaching resistance zone. Price pattern will confirm the supply and whether it remains temporary or lock an intermediate top. Exit level for current longs is 8205. Fresh longs should wait for the opportunity. 

- 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.