Minus Development sets up a rise

The November series just got interesting after the gap up and the spike into the close yesterday.

 

The down move which was one time frame from 6360 to 6004 in the November Futures showed value drifting lower and any more fall would have seen some serious long liquidation in the markets.

 

Critically at the 6000 support, the market missed an opportunity to develop and has since moved higher based on short covering and quick profit booking of some early shorts.

 

Nifty Mp 47 Minus Development Sets Up A Rise

 

The current profile of today is developing as a DD from yesterday and we are looking for signs of acceptance above current day highs .

 

This pattern of the profile marked by the minus development at the lows of 6000 would mean a retest of the 6360 zone in futures.

 

Time wise the DD pattern holds the key with a move above session highs sure to bring 6305 during the week.

 

Even a consolidation between 6210 and 6075 tomorrow will give the profile the required energy to travel higher.

 

Levels are all of Nov Futures.

 

As we have noted in the trading room, the BankNifty looks more bullish to test 11700 again in the coming days.

 

All said and done the Nifty is on track for the december target of 6632- 6652 spot.