Daily_Nifty_VP's View-21/08/13

LEADER POST for Wednesday (21/08/13)

1.         Supports are at about 5376, 5350, 5325 and 5285 while resistances are at about 5430, 5495 and 5585. Previous unfilled gap is at about 5238. The 100/200 wma are at about 5471/5440. Four +WWs can give about 5440 (once above 5380), 5455 (once above 5395), 5541 (once above 5475) and 5551 (once above 5487) (+WWs with higher targets are not mentioned as of now). A falling wedge BO can give about 5750 if nifty remains above 5350. An ascending triangle BO can give 5520 if nifty remains above 5420.

Nifty crashed again but did not break 5300 and then recovered smartly. It barely managed to close above 5400 again. Any lower close may take nifty down a lot. However, a +ve div persists on daily chart and on lower TFs and some recovery is likely. Also, daily candle is like a hammer. Weekly resistance is at about 5650. INR has played spoilsport and will remain key to the future of Indian markets in the short to medium term. High VIX can cause sharp swings. Only global cues and/or liquidity can take nifty further up.

2.         Pre-open data suggests a +ve nifty after a gap up open unless it remains below 5494 by afternoon.

3.         AS PER 9.30 STRATEGY, SELL ABOVE 5500NF, TARGET 5450, SL 5530.

4.         Target met without getting chance of an entry.

5.         Targets of first two +WWs of the first post were met due to gap up open.

6.         Gap filled.

7.         Target of BO of AT of the first post was almost met in the open itself.

8.         Nifty opened up with a big gap but reacted immediately. However, it later tanked in the afternoon due to sudden fall in INR. It thus made a higher high and lower low before closing strongly -ve and also strongly below yesterday's close. The targets of first two +WWs of the first post were met in the open. Also, target of BO of AT of the first post was almost met in the open itself. In addition, target of 9.30 strategy was met but before 9.30 itself and without giving chance of an entry. The daily candle is huge, bearish engulfing.

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