Daily_Nifty_VP's View-11/10/13

LEADER POST for Friday (11/10/13)

1.         Supports are at about 6000, 5956 and 5925 while resistances are at about 6035, 6065 and 6105. Previous high to watch is 6142. Three +WWs can give about 6050, 6068 and 6139 (+WWs with higher targets are not mentioned as of now). Four -WWs can give about 5987/5948/5888 (once below 6035) and 5979 (once below 6061, which is yet to be reached) (-WWs with lower targets are not mentioned as of now). BO of a falling wedge can give about 6125 if nifty continues to go up. Break down of a rising wedge can give about 5920/5880 if nifty remains below 6045. A bullish flag can give 6075 unless killed below 5740.

Nifty closed mildly +ve after a gap down open and closed above 6000 again and is clearly bullish. Thursday was a NR7 day and we can expect large move on Friday. Daily candle is like an evening star, which is a bearish sign. To confirm, nifty must close well below 6020, preferably with a gap down open. If it goes below 5900, it may fall further. Oil price and/or INR can play spoilsport any time and will remain key to the future of Indian markets in short to medium term. VIX is still high and can cause sharp swings. Only global/local cues and/or liquidity can take nifty further up. Infy results on Friday will cause choppiness.

2.         Pre-open data suggests a +ve nifty after a gap up open unless it remains below 6104 by afternoon.

3.         Immediate trend down, target 6094NF, SL 6175. Wait for 9.30 data.

4.         Target reached.

5.         AS PER 9.30 STRATEGY, SELL ABOVE 6178NF, TARGET 6094, SL 6208.

6.         Targets of first two +WWs and the bullish flag of the first post met in open itself.

7.         Nifty opened up with a huge gap and quickly reacted but recovered later to close slightly -ve but strongly above yesterday's close. The targets of first two +WWs and the bullish flag of the first post were met in the open itself. Also, target of 9.30 strategy was met before 9.30 i.e. without giving chance of an entry. Daily candle is a hanging man and also an evening star.

The week’s chart suggests that chances of further upside remain in spite of some reaction.

The intraday and week's charts of nifty spot values with 5 min candles are shown below.