Daily_Nifty_VP's View-07/11/13

LEADER POST for Thursday (07/11/13)

1.         Supports are closely spaced at about 6197, 6170 and 6145 while resistances are at about 6231, 6250, 6265 and 6290. Three +WWs can give about 6250 (once above 6216), 6280 (once above 6236) and 6350 (once above 6240) (+WWs with higher targets are not mentioned as of now). Four -WWs can give about 6197, 6181, 6100 and 6060 (-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. BO of a falling wedge can give 6340 if nifty remains above 6231. A bullish flag can give higher targets unless killed below 6180.

Nifty fell but managed to close above 6200 and looks bearish in immediate term as it may be tiring out and may take a breather for consolidation. A close below 6190 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 small gap up open unless it remains below 6228 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6262NF, TARGET 6218, SL 6292.

4.         If SL is hit, buy below 6267NF, target 6312, SL 6337.

5.         SL hit.

6.         Targets of first two +WWs met.

7.         Target of reverse trade met without giving chance of an entry.

8.         SL of reverse trade also hit.

9.         Targets of first two -WWs also met.

10.       Nifty opened up with a slight gap, remained flat till 11 am even as it made a lower low before shooting up to make a higher high. It then collapsed again to close -ve and also below yesterday's close. Due to whipsaws, targets of first two +WWs and first two -WWs of the first post were met. SL of 9.30 strategy was hit and target of reverse trade met but without giving chance of an entry. Later SL of reverse trade was also hit but target of original trade was missed by about 3 points. Daily candles look like three black crows.

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