Saturday, August 28, 2010

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.


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.


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.



    Script to watch today : Bhel, Cairn, HCLTech, Kotak Bank, Maruti, PNB, Reliance, SBI, TataMotors, Tisco, TCS.

  2. Wonderful work, Rajib, I don't think you should worry about not getting one support wrong - most analysts have got the entire direction wrong!:)

  3. Dear Rajib,

    I have come across your site recently..

    Appreciate if you can answer the following queries...

    Can you please tell if the values on your webpage are for NIFTY spot or futures..?

    I have downloaded the file as per the link.

    Will the box size and reversal distance be automatically fed as per the stock price or do we need to enter it manually ..?

    Can similar logic be applied for futures data..?

    If yes then how to download the data using the link in the excel file...?

    Appreciate your time and efforts.

    Thank you,

    Best regards
    CS (