Daily_Nifty_VP's View-21/08/12

LEADER POST for Tuesday (21/08/12)

1.         The supports are at about 5352, 5340 and 5328 while other previous lows to watch are about 5346/30/09 and 5294. Resistances are at about 5367, 5377, 5404 and above 5430. Two likely +WWs give about 5380 (once above 5341, the point 5 which is not reached yet) and 5430 (+WWs giving higher targets are not mentioned) while a likely -ww gives about 5310 (-WWs with lower targets are not mentioned). A likely bullish flag with a mast of about 105 can gives higher levels unless killed below about 5337. Nifty made a new high on Friday but closed lower but at the TL from the low of 26th July indicating some support coming in and uncertainty in the market.

Nifty is looking bullish but 5390-5420 is still a stiff resistance zone. As long as it does not close below 5300 on daily/weekly basis, there should be no worry. Volatility will increase in coming week as nifty approaches expiry. Also, it may remain relatively flat to consolidate in case there is further upside left, which is very likely.

2.         PCR at 1.18 and VIX at 15.73. Pre-open high/low at 5368.70/5310.60 and close at 5368.70 i.e. close at highest. This indicates that nifty may be flat to +ve.

3.         AS PER 9.30 STRATEGY, BUY BELOW 5391NF TARGET 5425/34 SL 5361.

4.         A flag gives 5420 unless killed below 5378. I missed to mention the first +ww target was met in first 5 min.

5.         Let's see whether we get 5454 today.

‎6.         (Post by LLK) "TARGET 5425/34 " achieved.

‎7.         90 above yesterday's low! +ww target of 5430 considered met as it was appx.

8.         Nifty opened up with a slight gap, did not break opening low and remained flat till 12.30 before making its strong upmove. It took out three resistance levels, gave targets of both +WWs as well as the flag identified during the day, giving a bullish hint as stated in the first post. It gave the target of 9.30 strategy but without giving a chance for an ideal entry. In the process, it not only made a new high but also closed at a new high, that too above 5400. The only worrisome aspect is that -ve div on rsi on daily chart still remains.

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