Daily_Nifty_VP's View-14/10/13

LEADER POST for Monday (14/10/13)

1.         Supports are at about 6075, 5990, 5960 and 5916 while resistances are at about 6140 and 6170. Previous high to watch is 6142. Three +WWs can give about 6155, 6239 and 6283 (+WWs with higher targets are not mentioned as of now). Two -WWs can give about 5978 (once below 6086) and 5948 (once below 6079) (-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 6025.

Nifty closed mildly -ve after a huge gap up open and closed just below 6100 and seems heading high. However, daily candle is a hanging man and also an evening star, a bearish sign. To defeat it, nifty must close above 6100, preferably with a green candle. But, fall may not be much since weekly candle is still strong. If nifty goes above 52 week high of 6230, it may head towards an all time high. If it goes below 5980, 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. US debt ceiling issue will hand over the global markets.

2.         Pre-open data suggests a +ve nifty after a flat open unless it remains below 6093 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6101NF, TARGET 6071, SL 6131.

4.         If SL is hit, buy below 6133NF, target 6163, SL 6103.

5.         SL hit.

6.         Target of BO of falling wedge of the first post was met.

7.         Nifty opened down slightly and remained in a tight range of about 41 points throughout the day. It made a higher high and low than those on Friday before closing +ve and also above Friday's close. More importantly, it closed above Friday's high. Target of BO of a falling wedge of the first post was met. SL of 9.30 strategy was hit but target of reverse trade was not met. Daily candle is like a star. Monday was a NR 7 day.

The intraday chart of nifty spot values with 5 min candles is shown below.