Daily_Nifty_VP's View-18/11/13

LEADER POST for Monday (18/11/13)

1.         Supports are at about 6050, 6025 and 5995 while resistances are at about 6069, 6085, 6169 and 6195. Six +WWs can give about 6072, 6080, 6104, 6110, 6137 and 6229 (+WWs with higher targets are not mentioned as of now). Three -WWs can give about 6036, 5997 and 5952 (-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 6150. BO of two falling wedges can give about 6280/6340 if nifty remains above 5985.

Nifty rose and closed above 6050 bringing some relief to bulls. Daily candle is an inverted hammer but is inconsequential as it not at the end of a trend. Weekly candle is like a hammer and can help continue the reversal. To confirm reversal, nifty must close +ve, particularly after a gap up open above 6057. Oil price and/or INR can 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 above 6112 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 6177NF, TARGET 6209, SL 6147.

4.         Targets of first five +WWs met.

5.         Target met.

6.         Nifty opened with a gap, rose further and then remained within a range till about 2 pm before making a sharp upmove. It thus made a higher high and low before closing strongly +ve and also strongly above Friday's close. The targets of first five +WWs of the first post were met as also the target of 9.30 strategy. Daily candle is a big, bullish Marubuzo.

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