Daily_Nifty_VP's View-14/08/12

LEADER POST for Tuesday (14/08/12)

1.         The supports are at about 5338, 5326, 5321 and 5314 while resistances are at about 5354/56, 5386, 5400 and 5460. Two likely +WWs give about 5380 and 5410 (+WWs giving higher levels are not mentioned) while two likely -WWs give about 5311 (once below 5330) and 5293 (once below 5344) (-WWs with much lower levels are not mentioned). Nifty bounced off the bottom of the channel that had formed (and mentioned in earlier posts) on Monday whose top is about 5460. Also, a likely bullish flag with a mast of about 43 has formed and can gives higher levels unless killed below 5325 and an apparent falling wedge formed in the last few days has broken out giving about 5376.

Nifty is now at a break out level. As long as it does not cross 5280/60 on the lower side on daily basis, uptrend is intact considering that it closed at its highest since 3rd April. Liquidity flow is strong. Tuesday is a day of inflation numbers and will be volatile. Hence trade with good SLs.

2.         I will be away in the morning and will not able to post but will try to post 9.30 strategy through Lalitji. However, I am giving one hint for ease of those interested. Whatever the open (O) value, buy around O-0.75% and sell at O+0.75% (but not short sell). At the same time, I feel NF may not go below 5345 though retesting of previous low of 5320NF is not ruled out. Market could be volatile due to inflation data coming out today.

3.         (Post by LKL) 09:30 strategy SELL ABOVE 5350 TARGET 5330 SL 5380.

4.         (Post by LKL) SL triggered with Nifty 5391+ Future already.

5.         NS made a slightly higher high than previous one on 8th Oct. but 5386 is not crossed yet. In the process, targets of first +ww, flag and falling wedge breakout mentioned in the first post met.

6.         A 39 high mast flag fails below 5345NS.

7.         Nifty almost 90 above yesterday's low. Long holders should keep tight SL now e.g. 5390NF.

8.         If it breaks 5374NS, further fall is possible.

9.         Finally nifty got tired after 90 above yesterday's low, as it always does.

10.       Nifty opened flat and remained mildly -ve till 11.30 and once inflation data was out, it started its much awaited upmove. It made a new high since 16th March, closed +ve and also above Monday's close and its highest since 15th March. The second support and resistance levels held. Nifty met targets of first +ww, flag and wedge breakout mentioned in the first post. Once again, the SL for 9.30 strategy's "sell" call was triggered. Nifty could not go up more than 90 points above Monday's low and could not cross 5387.

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