Nifty Point & Figure (PnF) Analysis - Week 20100830 - 0903 - Mid Week Update

With the market showing signs of weakness, thought of updating hourly chart. Daily chart does not show much changes as of now.


Hourly Chart:

Hourly chart shows movement within the channel. As expected the support came near 5340. Now upside channel will offer resistance in the range 5435 - 5451. This could be a shorting range. However, one can not be sure of the short until it convincingly goes past the strong support line at 5360.

DLF Daily:

Thought of updating DLF daily chart also.

DLF is holding last line of support. Initial SL was hit. However, if somebody is still holding it for long-term 290 could be given a chance for last support.

Nifty Point & Figure (PnF) Analysis - Week 20100830 - 0903

Weekly Analysis:

Weekly Chart shows half-way retraced and resting on the intermediate UP channel. A DOWN side support at current point or little below at 5340 expected. Resistance on UP side can be derived only at double top at 5540.


Daily Analysis:

Daily chart has broken an intermediary UP channel support line. However, this has been a temporary consolidation zone - either a Distribution or Accumulation happening. Break of 5360 would confirm distribution (backed-up by the FII selling). Subsequent DOWN side support at 5140 - 5160.
Immediate pull-up should face minor resistance at 5460 - 5480.

Hourly Analysis:

Hourly chart has formed an intermediate DOWN channel. The channel is providing support at current price. A level of consolidation at hourly chart is expected to happen. Break on either side will indicate the future direction. My take is accumulation to happen at this long support line at 5360 - 5370 level. If this gets broken, deep DOWN expected or else we shift gear forward on UP side.

Summary:

There are mixed signals here. Weekly got support at 5340 - 5380. Daily support broken upside resistance 5460 - 5480. Hourly expecting support to come at 5360 - 5370.

One could go long at 5360 level, exit if it breaks 5340, monitor 5470 level for resistance. If broken stay long or else short at 5470.

Note:

PnF chart has got excellent support & resistance level. Therefore, retracement actions are superior to enter or exit. Targets are bit difficult to predict. If you see the last weeks analysis, from Hourly - Daily - Weekly downside supports predicted were 5470 - 5440 - 5380. Notice the hourly chart 5470 & 5380 have acted as support, however 5440 did not. May be with experience we get more learning.

People who are following, would request to provide your feedback.

Shall update DLF later.

Nifty Point & Figure (PnF) Analysis - Week 20100823 - 0827

Weekly Analysis:

Weekly chart shows no sign of weakness. Going strong on UP side with a very high target of 5800. Immediate DOWN side if any should get supported at 5380 - 5400 level.

Daily Analysis:

Daily chart after a consolidation at 5400 - 5420, convincingly moved up. Facing a resistance near the top of the rising channel. Might retest the channel top at 5560 - 5580. If resisted, support comes back at 5440 - 5460. It should be a good buy zone.

Hourly Analysis:

Hourly chart also broke out of the converging rising channel. Facing a double top resistance, it might break out of the resistance and it should be a good buy zone. Or, it can again get into a congestion zone. In this case, the gravity of the congestion can get it pulled down to 5475 - 5480 level. This also can be a good buy zone.

Summary:

Nothing indicates much downside. Any pullback should be a good buying opportunity.

TIPS:

PnF is very useful to identify support & resistance. One following this should not take a position (buy / sell) on the first instance of breaking the support or resistance. It generally gives at least three instances near the zone to enter the position.

Weekend Investment :

I thought of introducing this also in addition to Nifty PnF. If I find any of the large cap charts attractive shall try to post.

DLF Daily Chart

DLF Daily Chart has just broken out of the congestion zone. Showing a great potential to move UP. One can buy at low risk at 327 - 328 and with SL of 309.

Would request readers to leave their comments if they wish to.

Nifty Point & Figure (PnF) Analysis - Week 20100816 - 0820

PnF charts are really good for important resistance and support level. However, a right entry or exit is really difficult. But with stocks this is far more easy.

This week onwards, I have developed a new application that zooms the chart to my desire and we shall be able to focus appropriately as and when required.


Weekly Analysis:

Weekly chart (40/3: e.g. 40 reversal points and 3-point reversal) does not show any sign of weakness. Still the upside is intact. Immediate support comes at the UP trend-line at 5340 - 5380. Weekly chart does not show any immediate resistance.

Daily Analysis:

Daily chart shows congestion at the top of the channel. A break-out or down is definitely on the card. If it's a breakout 5700 should be the eventual target. If it's a breakdown 5060, where the channel bottom comes should be the support.

Hourly Anlaysis:

Hourly chart also shows a triangular congestion, which is a bearish sign often. Strong support at 5360 which has been the support for the last whole week. Breakout has to come above the 5500 marks which is the contracting channel at the top.

Summary Analysis:

Weekly UP. Daily & Hourly congestion. Support 5360. Resistance same old 5500 - 5520.

Nifty Point & Figure (PnF) Analysis - Week 20100809 - 0813

Weekly Analysis:

Weekly chart shows LT UP channel support held and moving up. The same should be resisted at 5620. The LT UP channel support should be held 5240 - 5280. There is also a chance of triple top resistance at 5550.

Daily Analysis:

Daily chart crept inside the Int UP channel (Blue) again. However, within the channel there is a triple top develops, if it falls below 5400. That will offer support at 5150 - 5190.

Hourly Analsyis:

Hourly chart has formed a new Int DOWN (Blue) channel. The support has been tested at 5426. Upside on pullback should be resisted at 5450 - 5460. The down ward movement of this channel support and LT UP channel (Yellow) support comes around 5390 - 5400.

Summary:

Double top on Weekly chart. Triple chart on Daily chart. Strong resistance at 5500.
Hourly chart is down with strong support 5390 - 5400.

Nifty Point & Figure (PnF) Analysis - Week 20100802 - 0706

Weekly Analysis:

Weekly chart has met with double resistance. Turning back and should get support at 5280-5320. If upside resumes, it should be resisted at 5540 if broken might test 5625 - 5670.

Daily Analysis:

Intermediate UP channel (blue) support got broken at 5370. Next support comes at LT UP channel at 5070 - 5110. If it turns up should get resisted at 5540 - 5580.

Hourly Analysis:

A new intermediate DOWN channel is formed. This has resisted it at 5358. If it breaks the LT UP channel should support at 5290 - 5300. If the support acts strong, immediate resistance is at 5400 - 5410 level.

Summary:

More of DOWN side than UP side expected. Pullbacks if any should get resisted at 5370 - 5410. DOWN side support comes first at 5300 and subsequently at 5070 - 5100.