Dated :- 24.11.2013 (SUNDAY)

                                                       NIFTY  Spot :   5995.45

Hi,

Readers,

After sharp fall as was timely cautioned in my blog dated Nov. 19, 2013 Nifty chart is showing interesting chart patterns at present.

On one hand on daily charts Nifty is showing that it is on the verge of breaking down bearish head and shoulder(H&S) pattern below 5940. And co-incidentally downward sloping channel is also at 5930.

Thus 5930 becomes very important level. Close below this level will give bearish H&S breakdown and channel breakdown.

On other hand on hourly charts Nifty chart is showing that it is oversold at this point of time. Nifty hourly chart is also showing +ve divergence on RSI.

Which indicates that Nifty wants to rebound.

CHARTS ATTACHED.

This week is expiry week also thus volatility will be there.

For current week 6140 will be a very important level in case of rebound. 

DAILY CHART SHOWING
H&S PATTERN &
CHANNEL

HOURLY CHART SHOWIMG
+VE DIVERGENCE ON RSI

Trade accordingly.