Daily_Nifty_VP's View-23/10/13

LEADER POST for Wednesday (23/10/13)

1.         Supports are at about 6187, 6160, 6135, 6116 and 6075 while resistances are at about 6222,6270 and 6320. Five +WWs can give about 6215, 6230, 6250, 6275 and 6347 (+WWs with higher targets are not mentioned as of now). Four -WWs can give about 6167 (once below 6221), 6140/19 (once below 6210) and 6008 (once below 6162) (-WWs with lower targets are not mentioned as of now). Break down of few rising wedges/channels can give about 6030/5880/5825/5700 if nifty goes and remains below6140. BD of another rising wedge can give 6130 unless nifty continues to go up.

Nifty closed flat but above 6200 and seems to be tiring out. The daily candle is a doji, a likely reversal sign. Also, a slight -ve div is seen on daily chart. Tuesday was also a NR7 day on the back of a NR4 day implying a possible big move on either side on Wednesday. If nifty goes above the 52 week high of 6230 and then 6280, it may head towards an all time high. If it goes below 6130 and then 6030, it may fall much more. 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 moderately high and can cause sharp swings. Only global/local cues and/or liquidity can take nifty further up.

2.         Pre-open data suggests a +ve nifty after a slight gap up open unless it remains below 6209 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6220NF, TARGET 6184, SL 6250.

4.         Target met without getting chance of an entry.

5.         Target of first -ww met.

6.         Target of second -ww also met.

7.         Target of 6130 of BD of a rising wedge met.

8.         Target of third -ww also met.

9.         Nifty opened up with a slight gap and just fell. It made a lower high and low than those yesterday. It rose late in the day but closed -ve and also below yesterday's close. The targets of first +ww and the first three -WWs as well as that of BD of a rising wedge of the first post were met. The target of 9.30 strategy was also met but without giving chance of an entry. The daily candle is a hanging man.

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