Daily_Nifty_VP's View-25/07/13

LEADER POST for Thursday (25/07/13)

1.         Supports are at about 5967, 5917, 5857 and 5820 while resistances are at about 6001, 6046, 6065 and 6093. Two +WWs can give about 5999 and 6070 (once above 6021) (+WWs with higher targets are not mentioned as of now). Two -WWs can give about 5889 and 5857 (-WWs with lower targets are not mentioned presently).

Nifty fell sharply in spite of a gap down open and closed below 6000 and seems to be headed down. The evening star and the "coiled spring" pattern mentioned in Wednesday's thread showed its effect. 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. This being an expiry day, trade carefully and book trades quickly.

2.         PCR down at 1.29 and VIX up at 16.91. Pre-open data suggests a +ve nifty after a small gap down open unless it remains below 5970 by afternoon.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5995NF, TARGET 6025, SL 5965.

4.         SL hit.

5.         Since SL is hit, sell above 5966NF, target 5935, SL 5996.

6.         Bearish flag can give 5924 unless killed above 6010.

7.         Target of reverse trade met.

8.         Target of bearish flag mentioned earlier met.

9.         Nifty again opened down with a gap and kept going down. It made a lower high and low than yesterday before closing strongly -ve and also below yesterday's close. SL of 9.30 strategy was hit and target of reverse trade was met. Also met was target of a bearish flag posted during the day.

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