Daily_Nifty_VP's View-14/11/13

LEADER POST for Thursday (14/11/13)

1.         Supports are at about 5921 and 5885 while resistances are at about 6010, 6025, 6110 and 6195. Five +WWs can give about 6011, 6096 (once above 6048), 6121 (once above 6058), 6104/75 (once above 6006) (+WWs with higher targets are not mentioned as of now). Three -WWs can give about 5952, 5938 and 5909 (-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 6175. BO of two falling wedges can give about 6280/6340 if nifty remains above 6010.

Nifty fell for the 8th day and closed below 6000 and seems very bearish unless there is a sharp pullback. However, a +ve div has appeared on lower TFs. Also, daily candle is like a morning star and inverted hammer, likely reversal signs. To confirm reversal, nifty must close strongly +ve, particularly after a gap up open above 5999. 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 gap up open unless it remains below 6037 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 6071NF, TARGET 6126, SL 6041.

4.         Target met without getting chance of an entry.

5.         Targets of first two +WWs met.

6.         Nifty opened up with a gap and rose further to make a new high. However, it later reacted to make a higher low before closing mildly +ve but much above yesterday's close. The targets of first two +WWs of the first post were met. The target of 9.30 strategy was also met but without giving chance of an entry. Daily candle is an inverted hammer while weekly candle is like a hammer.

The week’s chart suggests a recovery after a consistent fall for 8 days.

The intraday and week’s charts of nifty spot values with 5 min candles are shown below.