26 August 2011

Nifty : A September Bottom?

I wanted to get this out earlier, just after expiry of August series, but time did not permit. If you recall PCR Cycle post, I showed how Nifty looks to be following a PCR cycle.

Above image shows the Nifty and PCR updated till August Expiry. I have marked Jan, May and August series. The similarity in all the 3 series here is that PCR and Nifty showed continued weakness right through the series. Interesting to note is that Feb and June series (series next to the downtrend series) marked the swing bottom. Going by the same analogy will we see a bottom in September?

There are few more insights that can be taken from this chart. Will look into it when time allows. Or better why don't you try to get some!


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