Nifty ready for another Down Leg?

<Update on 13th Feb, 2014>
On our facebook page, we had given a BUY call on 6000PE at 40 on 12 Feb, 2014 and booked it at 75 and shifted to 6100PE at 127 levels. Nifty was flat by the close on 12 Feb, 2014 and yet we gave a BUY call for 6000PE. Why? Read ahead.
Nifty Daily Chart
In our earlier posts we had been maintaining that 6080-6085 level is a stiff resistance for Nifty which if broken could see 80-100 point moves. It did break and Nifty shot upto 6106.6 levels and came back to 6084 by close and formed an inverted hammer on the daily charts. This is a bearish indication as the price broke a resistance, bulls took it up but by day end the bears stepped in and brought it back which means that bulls weren't able to sustain this move. This kind of a false breakout was also seen on the day Nifty made a new high on 9th December, 2013 as the price opened at a high and by close the bears had taken it down.

Nifty - Daily Chart
The above daily chart of Nifty shows a classic Hanging Man candle and a following bearish day for confirmation. This pattern suggests that Nifty has created a top for it's recent upmove and till 6080 is not taken out, we can expect a downside till 5970 levels. Nifty has support at 6020 levels as indicated by the green trendline. Our view is that if we break below the green trendline support in the next 2 sessions, we are heading for 5900 and lower levels.

Nifty Hourly Chart
The hourly chart of spot Nifty shows a resistance being formed from the swing low of 7th Jan, 2014. This resistance if broken could lead to a 100 point rally, but if Nifty fails to break this resistance and breaks below 6020-6030 then more bearishness can be seen in the coming days.
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