Daily_Nifty_VP's View-13/11/13

LEADER POST for Wednesday (13/11/13)

1.         Supports are at about 5990, 5965 and 5905 while resistances are at about 6055, 6075 and 6098. Four +WWs can give about 6095 (once above 6051), 6146 (once above 6054), 6155 (once above 6067) and 6176 (once above 6119) (+WWs with higher targets are not mentioned as of now). Two -WWs can give about 5947 and 5911 (-WWs with lower targets are not mentioned as of now). Break down of a few rising wedges/channels can give about 5880/ 5825/5700 if nifty remains below 6170. BO of two falling wedge can give about 6280/6340 if nifty remains above 6040.

Nifty fell for the 7th day and closed below 6050 and seems headed south. However, a +ve div has appeared on lower TFs and some recovery is likely. Oil price and/or INR continue to play spoilsport 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 down open unless it remains above 6000 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 6044NF, TARGET 5997, SL 6074.

4.         If SL is hit, buy below 6038NF, target 6087, SL 6008.

5.         SL hit.

6.         Target met

7.         Nifty opened down with a small gap and rose slowly till afternoon but could not sustain due to persistent selling pressure. It made a lower high and low than yesterday before closing mildly -ve and also below yesterday's close. The SL of 9.30 strategy was hit and the target of reverse trade was met. Nifty then went down and almost hit the SL of reverse trade. The daily candle is like a morning star and an inverted hammer.

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