Daily_Nifty_VP's View-05/11/13

LEADER POST for Tuesday (05/11/13)

1.         Supports are closely spaced at about 6300, 6275, 6255, 6215 and 6189 while resistances are at about 6330, 6354 and 6380. Previous all time high level is at about 6357. Two +WWs can give about 6355 and 6410 (+WWs with higher targets are not mentioned as of now). Four -WWs can give about 6285 (once below 6322), 6242/27 (once below 6278) and 6065 (once below 6297) (-WWs with lower targets are not mentioned as of now). Break down of a few rising wedges/channels can give about 6030/5880/ 5825/5700 if nifty goes below 6175. Two bullish flags can give higher targets unless killed below 6269 and 6170.

Nifty rose again to give an all time high daily and weekly close and appears headed further North. At the same time, it may be tiring out and may take a breather for consolidation. A breach below 6270 may cause further fall. 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 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 gap down open unless it remains above 6283 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6320NF, TARGET 6287, SL 6350.

4.         Target met.

5.         Targets of first two -WWs met.

6.         SL hit after giving target. Since SL is hit, buy below 6350NF, target 6382, SL 6320.

7.         Nifty opened down with a gap and made a lower high and low than those on Sunday before closing -ve and also below Sunday's close. The targets of first two -WWs of the first post were met. Also, met was target of 9.30 strategy. Later, its SL was triggered but target of reverse trade was not met.

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