Nifty and Stock Analysis by using point and figure: CHART STUDY THROUGH POINT AND FIGURE

Date: 29th November 2013

Dear all

In earlier mail I had mentioned that nifty should take some upside till 6140 and today nifty has taken high of 6112.95 … Also yesterday I have recommended buy call of voltas for target of 108++ and today it has taken high of 116.40 ….. Also I had mentioned that from these levels any double top buy or double bottom sell should be tradable with strictly stop loss..

From last couple of days nifty is moving in very narrow range 6000-6120 . And now everyone is asking where nifty should go from here?? Will nifty able to break this range?? So without taking any assumption let’s see in below chart what price tell us because as we know price discounts everything.

When I saw figure 1 (NIFTY 10X3 CL P&F CHART) then I realise if nifty able to close above 6120 then we should take long position in nifty with stop loss of below 6050 on closing basis… In nifty still major trend is still up also nifty is looking in oversold zone so from here double top buy call could take….

Also in figure 2 I realise that nifty anchor point resistance is at 6130 and above 6130 double top buy signal will generate so from this levels we could take long position in nifty