Daily_Nifty_VP's View-06/08/13

LEADER POST for Tuesday (06/08/13)

1.         Support is at about 5659, 5627 and 5575 while resistances are at about 5748, 5812 and 5840. A number of +WWs can give about 5725/5793 (once above 5673), 5730/5777/5875 (once above 5625), 5815 (once above 5650) and 5818 (once above 5656) (+WWs with higher targets are not mentioned as of now). A -WW can give about 5532 (-WWs with lower targets are not mentioned presently). Two falling wedges/channel BO can give about 5805/6045 if nifty remains above 5680.

Nifty closed below 5700 again and is still clearly bearish. However, a +ve div is still seen on lower TFs. Also, daily candle is a "low price" Harami cross and a reversal is likely. Also, Monday was a NR7 day and hence Tuesday may see a big move either way. Higher levels are possible only if nifty closes above 5870. If support levels given above are breached or if RSI on daily chart goes below 37, much lower levels are likely. Oil price and/or INR will remain key to the future of Indian markets in the short term. High VIX can cause sharp swings. Only global cues and liquidity can prevent further fall.

2.         Pre-open data suggests a volatile but +ve nifty after a gap down open unless it remains below 5664 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5685NF, TARGET 5645, SL 5715.

4.         Target met without giving chance of an entry.

5.         Target of -ww of the first post was met.

6.         Nifty opened down with a gap and kept sliding. The fall accelerated in the afternoon. Nifty thus made a lower high and low than those yesterday before closing strongly -ve and also strongly below yesterday's close. The target of 9.30 strategy was met but without giving chance of an entry. The target of -ww of the first post was also met.

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