We are looking at a 8 year Nifty IT chart
Lets see what the chart is trying to tell us...
- Between 2009 to 2015 the price has risen from 1933 levels to 12908 levels
- Since Jan 2009 till March 2015 the index has been making higher top higher bottom
- It is only after March 2015 that the index is seen making lower top lower bottom on a regular basis
Hence...
NSE:PNB is showing good market structure with rising volume on up-moves. * See those green volume spikes.
Short-term target would be intermediate resistance of 129.
Stop-loss would be a good trendline break.
Waiting for breaking flag will not result in favourable risk to reward ratio..... hence reccomend buying around 608-610 with stoploss of 600 & target 650 (risk:reward ---1:4)