Daily_Nifty_VP's View-08/07/13

LEADER POST for Monday (08/07/13)

1.         Supports are at about 5830, 5797 and 5749 while resistances are at about 5887, 5899 and 5933. The unfilled gaps on the lower side are at about 5837/5682. Three +WWs can give about 5884 (once above 5855), 5886 (once above 5865) and 5942 (once above 5831) (+WWs with higher targets are not mentioned as of now). Three -WWs can give about 5833 (once below 5880), 5788 (once below 5863) and 5744 (once below 5886) (-WWs with lower targets are not mentioned presently). A weekly bearish flag can give a much lower level unless it gets killed above about 6012. A daily bullish flag can give a much higher level unless it gets killed below about 5700.

           Nifty fell in spite of a gap up opening due to rising oil prices and falling INR, as was mentioned in Friday's thread. Though the day and week closed comfortably above 200/50 sma respectively, the daily candle is like an evening star while the weekly candle is like a hanging man, both bearish signs. The confirmation of this bearish sign will come if Monday closes Red and below Friday's close, particularly after a gap down open. If nifty closes above 50 sma (about 5924), it will give hopes to bullis. A close below 200 sma (about 5832) may cause further fall. Oil price and INR will remain key to the future of Indian markets in the short term. VIX and PCR are expected to remain high and can cause sharp swings. Only global cues and/or liquidity can take nifty further up.

 

2.         PCR up at 1.18 and VIX up at 18.67.

3.         (Posted by LKL) “9:30 Strategy - SELL above 5856 NF target 5794 SL 5886. Target met without chance of entry".

4.         First lower gap of first post filled up soon after open.

5.         Targets of first two -WWs of the first post met.

6.         Nifty opened down with a gap and continued to go down. However, it recovered after about an hour. It made a lower high and low than those on Friday before closing -ve and also below Friday's close. The first gap on lower side was filled up soon after open. Targets of first two -WWs of the first post were met. The target of 9.30 strategy was also met soon after open but chance of an entry did not materialise. The daily candle is a hammer.

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