Sunday, September 26, 2010

Nifty Point & Figure (PnF) Analysis - Week 20100927 - 1001

Weekly Analysis:

Weekly chart last week suggested 6020 as the target and it reached 6030. The current chart shows in high resistance zone. Even if the UP side continues, it should be limited to 6060 - 6100. DOWN side should first break 5980 and subsequently can face the support at 5820 - 5860.

Daily Analysis:

However, we read Daily chart with a little bias and predicted minor pullback at 5760 level before it could take-off up side, but it did so without testing the down side. This tells that till intermediate profit-booking has not happened.
Now the chart has entered an Accumulation-Distribution zone. The horizontal triangle in formation, with two bases. Break of DOWN side 5940 shall target 5820 - 5840. Or else UP side starts on break of the slant side of the triangle. If it spends more time, the force of the thrust will be quite high on UP side with targets of 6100+.

Hourly Analysis:

Hourly chart reading was comparatively satisfactory. New UP side found on break of the erstwhile intermediate UP channel (maroon). It has entered now a trading zone 5950 - 6040. Break on DOWN side shall either oscillate in the intermediate DOWN channel (maroon) or shall approach towards the previous UP channel (Blue) 5840 - 5860.


Weekly in resistance zone, maximum upside 6060. Daily in congestion zone with DOWN side 5840 - 5860. Hourly in trading zone 5950 - 6040.


Buy price triggered. SL to be maintained as in the last post. Target remains same.

Saturday, September 18, 2010

Nifty Point & Figure (PnF) Analysis - Week 20100920 - 0924

Apology for Typo mistake ... Correction highlighted* in Summary

Weekly Analysis:

Weekly chart is near much awaited UP channel resistance. Conservatively, 5800 was suggested in last month sometime! In absence of insider info and money power, this is really quite satisfying to see age-old technical analysis bearing the fruit of faithful study. My "Sir" iLango says this - "unbiased study".

However, in absence of major front-line stocks participating this rally, the sustainability of this break-out is quite doubtful. Major UP side resistance seen 5980 - 6020. A pull back from here should be a bit deep DOWN 5620 - 5660. A participation of retail involvement here will get into Euphoric zone. This level to be watched for future course of action.

Daily Analysis:

Daily chart also has reached channel top. Don't see breaching UP side 5930 before retesting intermediate channel support DOWN side at 5740 - 5750. A deeper correction will take it to next intermediate channel support at 5620 - 5640.

Hourly Analysis:

Breaking above the consolidation zone, again entered a narrow band. Two channels might play the act. The intermediate UP (maroon) channel in a trading zone might keep it in the range of 5870 - 5930. Another parallel channel (5820 - 5910) might provide some consolidation. And if this happens one more level of UP side break-out possible.


Daily & Weekly very near UP channel resistance (5980 - *6020). DOWN side support 5740 - 5640.
Hourly chart in a consolidation, expecting a DOWN side break soon!
5640 is an important level to watch!

DLF Update:

Those who stayed with the DLF call would have gained minimum 15% from it in a month. People who still have longer-term vision to this counter. I expect it to go further up may be near 385 - 390. However, break of 335 would weaken this possibility. With this DLF Update gets closed.


Weekly Chart:

Daily Chart:

Ispat Industries though largely a manipulated stock in the market. But looks quite promising for another period of long run. I am not sure of its fundamentals but the chart looks good. Looking for a pullback in the range of 22.5 - 23 would be a good entry point. However, breaking 22 would not be a good sign.

Entry: 22.5 - 23
SL: 21.5
Target: 26-28

Sunday, September 12, 2010

Nifty Point & Figure (PnF) Analysis - Week 20100913 - 0917

Weekly Analysis:

Weekly chart shows a clear break-out from the congestion zone of 5320 - 5520. Heading UP wards the channel resistance 5759. Any DOWN ward movement should be intermediate correction till the channel broken decisively below 5400, which anyway is far below. Therefore, we should stop talking about big fall etc. for the time-being. Trend is decisively UP, as suggested in the last post break of 5540 one should be sitting with long.

Daily Analysis:

Daily chart also indicates channel break on UP side. UP side target looks like the intermediate channel top 3 box above at 5720. DOWN side pullback if any should be restricted in the zone of 5400 - 5420. Getting a chance to re-enter here is very less. However, any zone near it should be very comfortable long.

Hourly Analysis:

Hourly chart has broken UP side resistance level of 5550 convincingly. Facing again an Hourly resistance at 5650 level, can break this level and target the channel top at 5680 - 5690. The red-blue band should be a good consolidation zone to make a further move UP side. A buy at 5550 can keep one on the right side of the market. However, break of this level one should exit and wait to watch the 5420 - 5450 level.


Longer time-frames show clear UP side. Hourly has resistance lined up at CMP or 5680 - 5690. A very short-term Short at this point for 100 points. Look-out 5550 for long-term Long.

Belated Happy Ganesh Chaturthi & Eid-Mubarak!

Saturday, September 4, 2010

Nifty Point & Figure (PnF) Analysis - Week 20100906 - 0910

Weekly Analysis:

Weekly chart bounced off the intermediate UP channel. Now facing a double top resistance in this zone up to 5580. Breaking which will be a new high. And eventually the target could be really high near 5800! DOWN side has lined-up multiple support zones 5500 - 5460 - 5380. Break of 5380 only can ensure the last line Bullish support at 5200 - 5220 level.

Daily Analysis:

Daily chart shows a heavy consolidation filling-up the entire channel. This definitely talks about the force of this mass. Anyway break-out will be quite phenomenal. A temporary DOWN channel (Blue dotted) break-out has happened. If the uptrend continues, immediate UP side resistance 5580 (don't expect a double top phenomenon at this congested zone). DOWN side support still acting at 5350 - 5370 level.

Hourly Analysis:

Hourly chart shows a positive break-out from the temporary DOWN channel and looking UP towards the immediate resistance zone (Red dotted line) at 5550. DOWN side support first comes 5400 followed by 5360.


It looks like 5540 - 5550 will be targeted. If broken on UP side, LONG can be taken at any pullback. Or else Short.

DLF Daily:

DLF Daily chart has found a new UP channel support at 296 level. There is a temporary DOWN channel (Maroon dotted) which is offering resistance now. If broken further resistance at 325 level (the old one!). However, breaking this will have UP side target of almost 350 level. DOWN side supports come at 299 - 301 level. LONG can be exited at this point.