LEADER POST for Wednesday (01/08/12)
1. The supports are at 5221, 5194/90 and 5160 while other levels to watch are 5154, 5077 and 5032. Resistances are at 5234/37 and 5273 while other levels to watch are 5239 and 5256. Four likely -WWs give about 5202 (once below 5227), 5136 (once below 5180), 5102 (once below 5152) and 5015 (once below 5197). A rising wedge seems to have formed, which, if true and breaks down, gives appx. 5150.
1. The supports are at 5221, 5194/90 and 5160 while other levels to watch are 5154, 5077 and 5032. Resistances are at 5234/37 and 5273 while other levels to watch are 5239 and 5256. Four likely -WWs give about 5202 (once below 5227), 5136 (once below 5180), 5102 (once below 5152) and 5015 (once below 5197). A rising wedge seems to have formed, which, if true and breaks down, gives appx. 5150.
Tuesday's candle is a
Hanging Man. Although it is a green (white) candle, it is still a bearish sign.
However, this bearish sign will be confirmed only if Wednesday closes below
Tuesday's close. If Wednesday also opens gap down and/or it's a red (black)
candle, it will be a stronger bearish sign. Nifty now seems set to break out
above crucial level of 5250 or break down below 5150 and Wednesday's nifty
movement will be important from that point of view. Note that there is a gap
created on 12/07 (5306), which could be filled up in case of a break out. Wednesday
is also an important event day when Fed may announce some measures in US and
its outcome will have a bearing on Thursday's market.
2. (AS PER 9.30 STRATEGY) TREND UP &
BUY BELOW 5252, TARGET 5278, SL 5222 (all NF).
3. Nifty opened mildly -ve giving hopes
that it may confirm the bearish signal given by Tuesday's hanging man but
managed to close +ve and also above Tuesday's close thereby negating the
bearish sentiment for the moment and actually making it slightly bullish. But
as indicated by the long legged doji candle of pre-open on 10tf, it remained as
flat as it can be, remaining in only a 27 point range. However, once again 5250
proved difficult to cross. Obviously, under the circumstances, neither the
target of 9.30 strategy was met nor was its SL triggered. Clearly, as mentioned
in the first post, nifty is waiting for the outcome of FED meeting on Wednesday
night.
The
intraday chart of nifty spot values with 5 min candles is shown below.
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